Five bidders for The Harborside retirement community in Port Washington; two in negotiations

Five entities have expressed interest in purchasing The Harborside retirement community out of bankruptcy, and two have been selected for further negotiations, according to a letter submitted to the bankruptcy court judge on Friday.

Gregory M. Juell, an attorney for The Harborside, wrote that it hoped to reach an agreement with one or both of the prospective buyers, together with the facility's debtors, in advance of Wednesday’s court hearing.

The identity of the would-be buyers wasn’t disclosed at their behest in the two-page letter, he said.

Details about the proposed sale may be disclosed at the hearing, including the sale price and closing date, planned debt payments and the approval process with the state Department of Health and Department of Financial Services.

A dispute between the health department and the winner of last year’s court-supervised auction caused a $104 million sale agreement to collapse last month. Since then, The Harborside has sought a new buyer and received a $1.25 million grant from its Manhattan sponsor to keep operating after Dec. 31.

The facility is home to 181 people whose average age is 90. It has 329 units and offers different levels of care as residents age, from independent- and assisted-living apartments to a nursing home and dementia care. It is one of four "continuing care retirement communities" on Long Island.

Prospective residents often sell their homes to pay The Harborside’s entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, which was between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after the resident dies.

The Harborside has filed for bankruptcy protection from its creditors three times in the past 10 years.

Check back for updates on this story.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.