Dearborn, MI-based continuing care retirement community Henry Ford Village announced late Thursday that it had received a successful bid from HFV OPCO LLC, a newly formed affiliate of Sage Healthcare Partners during its recent court-supervised sale process. The transaction is subject to bankruptcy court approval, as well as regulatory approvals and customary closing conditions.

The nonprofit Henry Ford Village filed for Chapter 11 bankruptcy in November, triggered in part by payments due to settle a 2014 class action lawsuit as well as struggling financial challenges related to the COVID-19 pandemic.

In accordance with the terms outlined in the asset purchase agreement presented during the auction, Sage will acquire all of the CCRC’s assets for $76.3 million, integrating Henry Ford Village into its network of senior living communities. Additionally, Sage plans to increase programming activities for residents and employees while investing in the improvement of the campus. Sage also has pledged to uphold Henry Ford Village’s current commitments to maintain the health, safety and lifestyle of its residents, according to Avi Satt, president of Sage Healthcare Partners.

“The community at Henry Ford Village is vibrant, and Sage takes great pride in bearing the responsibility of preserving this community for years to come,” Satt said. “We’re excited to bring a new chapter to the community’s story and look forward to strengthening Henry Ford Village financially while enhancing the lifestyle residents have come to love. Henry Ford Village is more than an exciting addition to Sage’s reputable portfolio, it is an opportunity to carry on the legacy of a long-standing and wonderful community.”

Chad Shandler, Henry Ford Village’s chief restructuring officer and a senior managing director at FTI Consulting, said the firm’s leadership team and advisers were pleased with the auction’s results.

“We’re confident that Sage, as the winning bidder, considers the long-term best interests of our residents, employees and all the wonderful people that make Henry Ford Village a true community,” he said. “Throughout the sale process, our guiding focus was to identify a path forward that upheld Henry Ford Village’s values and stabilized its financial position while allowing us to maintain the care and lifestyle our residents have come to know, love and rely on. Under Sage’s ownership, we believe Henry Ford Village will achieve just that while providing a distribution to unsecured creditors.”

Objections to the sale are due May 21, and the transaction with Sage will be heard at a hearing with the U.S. Bankruptcy Court currently scheduled for May 24.