Harborside retirement community's care units could close under proposed $80M sale
The Harborside retirement community in Port Washington has filed for bankruptcy protection from its creditors three times in 10 years. Credit: Newsday / J. Conrad Williams Jr.
The Harborside’s assisted-living apartments, nursing home and dementia care unit could all close — at least temporarily — under the sole buyout offer for the bankrupt retirement community, leaving only independent-living apartments on the Port Washington property, according to court documents.
Sr Hsg Acquisitions LLC and Focus Healthcare Partners LLC would pay $80 million for The Harborside, or $24 million less than a sale agreement that fell apart in October because of a state regulatory dispute.
That sale agreement also would have kept open all the facility’s care units and guaranteed the payment of tens of millions of dollars in entrance-fee refunds owed to the families of deceased residents.
The Harborside, a nonprofit which opened in 2010, has filed for bankruptcy protection from its creditors three times in the last 10 years. The facility is home to about 180 people whose average age is 90.
The Harborside, with 329 units, is a “continuing care retirement community” that provides different levels of care as residents age, so they don’t have to move when their health deteriorates. It is one of four such facilities on Long Island.
The Harborside “shall be conveyed to the buyer without any operating assisted living, memory care or skilled nursing beds,” states a six-page letter from Curt Schaller, manager of Chicago-based Focus, which owns other senior care facilities across the country.
“The buyer shall not have any contractual obligations to continue operating assisted living, memory care or skilled nursing beds, or accept assisted living, memory care or skilled nursing residents in the future absent all appropriate and required licensure approval from the New York State Department of Health,” he said in the letter filed in federal bankruptcy court on Thursday night.
Schaller added that Sr Hsg/Focus “does intend to apply” for licenses to operate assisted-living apartments and a memory care unit after taking over The Harborside — “and possibly” a license for a nursing home.
The sale is contingent on Harborside executives devising a plan that closes the assisted-living apartments, nursing home and dementia care unit — with the approval of the health department, he said.
The Sr Hsg/Focus proposal is like one that was turned down by U.S. Bankruptcy Judge Alan S. Trust one year ago. At that time, he selected the $104 million proposal from Life Care Services Communities LLC because it would have maintained all the levels of care and would have paid the entrance-fee refunds.
However, Iowa-based LCS, the third-largest operator of senior care facilities in the country, couldn’t reach an agreement with the health department so the sale agreement collapsed.
Last year, there were three potential buyers for The Harborside in a court-supervised auction. Up until Thursday night, there appeared to be two buyers vying for the facility but one failed to meet an 11 a.m. deadline to submit a final offer, said Gregory M. Juell, an attorney for The Harborside.
Focus has been an active buyer of senior communities, paying $41 million for the Summit Park development in Blue Ash, Ohio, in September and $164.5 million for four independent-living properties in Atlanta in 2021.
Prospective residents of The Harborside often sell their homes to pay its entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after a resident dies.
The Harborside’s assisted-living apartments, nursing home and dementia care unit could all close — at least temporarily — under the sole buyout offer for the bankrupt retirement community, leaving only independent-living apartments on the Port Washington property, according to court documents.
Sr Hsg Acquisitions LLC and Focus Healthcare Partners LLC would pay $80 million for The Harborside, or $24 million less than a sale agreement that fell apart in October because of a state regulatory dispute.
That sale agreement also would have kept open all the facility’s care units and guaranteed the payment of tens of millions of dollars in entrance-fee refunds owed to the families of deceased residents.
The Harborside, a nonprofit which opened in 2010, has filed for bankruptcy protection from its creditors three times in the last 10 years. The facility is home to about 180 people whose average age is 90.
The Harborside, with 329 units, is a “continuing care retirement community” that provides different levels of care as residents age, so they don’t have to move when their health deteriorates. It is one of four such facilities on Long Island.
The Harborside “shall be conveyed to the buyer without any operating assisted living, memory care or skilled nursing beds,” states a six-page letter from Curt Schaller, manager of Chicago-based Focus, which owns other senior care facilities across the country.
“The buyer shall not have any contractual obligations to continue operating assisted living, memory care or skilled nursing beds, or accept assisted living, memory care or skilled nursing residents in the future absent all appropriate and required licensure approval from the New York State Department of Health,” he said in the letter filed in federal bankruptcy court on Thursday night.
Schaller added that Sr Hsg/Focus “does intend to apply” for licenses to operate assisted-living apartments and a memory care unit after taking over The Harborside — “and possibly” a license for a nursing home.
The sale is contingent on Harborside executives devising a plan that closes the assisted-living apartments, nursing home and dementia care unit — with the approval of the health department, he said.
The Sr Hsg/Focus proposal is like one that was turned down by U.S. Bankruptcy Judge Alan S. Trust one year ago. At that time, he selected the $104 million proposal from Life Care Services Communities LLC because it would have maintained all the levels of care and would have paid the entrance-fee refunds.
However, Iowa-based LCS, the third-largest operator of senior care facilities in the country, couldn’t reach an agreement with the health department so the sale agreement collapsed.
Last year, there were three potential buyers for The Harborside in a court-supervised auction. Up until Thursday night, there appeared to be two buyers vying for the facility but one failed to meet an 11 a.m. deadline to submit a final offer, said Gregory M. Juell, an attorney for The Harborside.
Focus has been an active buyer of senior communities, paying $41 million for the Summit Park development in Blue Ash, Ohio, in September and $164.5 million for four independent-living properties in Atlanta in 2021.
Prospective residents of The Harborside often sell their homes to pay its entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after a resident dies.
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.
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