Almost a year after Lifespace Communities’ Dallas continuing care retirement community Edgemere filed for bankruptcy, a court ruling has all but finalized a change of ownership and management, which should happen after final hearings in the coming weeks.
Edgemere filed for bankruptcy last April in the US Bankruptcy Court for the Northern District of Texas, citing challenges from managing the effects of the COVID-19 pandemic and responding to a winter storm in February 2021.
In December, Edgemere withdrew a restructuring plan and committed to working with debtors on a plan to sell, Jeremy Johnson of Polsinelli, an attorney for Edgemere, previously told the McKnight’s Business Daily.
As of a Monday bench ruling by Judge Michelle Larson, the CCRC is expected to be purchased by Wilmington, DE-based Bay 9 Holdings, an affiliate of San Francisco-based Lapis Advisers. An entity named Long Hill at Edgemere is the intended manager of the property. Long Hill is a wholly owned subsidiary of United Methodist Homes, based in Shelton, CT.
The plan also requires Edgemere’s current owner, Lifespace, to reimburse approximately $145 million to almost 300 families for the entrance fees they’ve paid, the Dallas Morning News reported.
David Lawlor, president and CEO at The Long Hill Company and UHM, called Larson’s ruling “pivotal” in resolving the Edgemere bankruptcy case.
“There’s additional hearings to come through the process, and once those hearings conclude, we’re on course to implement this plan,” Lawlor told the McKnight’s Business Daily on Wednesday. Long Hill, he said, currently manages 17 properties in Texas.
Long Hill has been involved in managing “volatile situations” for more than 20 years via its management consulting business, according to Lawlor. Because of that experience, he said, Long Hill was contacted to help stabilize the Edgemere situation. Long Hill has been involved with Edgemere in a consulting capacity for several months.
Edgemere declined to comment.
