Lake Oswego, OR-based Eclipse Senior Living will cease business management operations in 2022 after 90 senior living communities it manages for real estate investment trust Ventas are transitioned to new operators, Ventas announced Tuesday morning.
The Chicago-based REIT said that the communities, located in 20 states, have been “adversely affected” by the coronavirus pandemic. They will be moved to eight operators “experienced in middle market assisted living” and with “a strong geographical overlap,” with the locations, Ventas said. Most of the markets in which the communities are located, according to the REIT, have “positive forward supply-demand characteristics, which should position the communities to recapture value and net operating income over time as the COVID-19 pandemic abates and the industry recovers.”
The communities did not contribute to Ventas’ overall net operating income or its senior housing operating portfolio in the second quarter of 2021, Ventas said.
The REIT expects most of the transitions to be completed by the end of this year.
Eclipse employees were notified on Oct. 1 that the company will cease operations in 2022, the same day the company filed a notice with the state of Oregon as required by the Worker Adjustment and Retraining Notification Act of 1988. A total of 171 employees will be affected by the company’s closure, according to Eclipse.
“I want to express my deep thanks to all company associates who have worked tirelessly over the past four years to build a solid platform for growth and more importantly, provide excellent care and service to thousands of residents and each other – especially during this ongoing pandemic,” Eclipse Senior Living CEO Kai Hsiao said in a statement shared with McKnight’s Senior Living. “I also want to express appreciation to our business partner, Ventas, for its continued support.”
Eclipse said it now will focus on “ensuring smooth transitions to new operators, treating associates with dignity and respect, and ensuring residents and their families continue to receive quality services and care throughout the process.”
In October 2017, Ventas had announced that it would transition more than 70 Elmcroft Senior Living communities to a new management company led by Hsiao. That company, named Eclipse, assumed management of 76 Elmcroft communities in January 2018. The Embark brand also has operated under the Eclipse umbrella since 2018, and the company announced plans for the Evoke brand in 2019.
Hsiao also is the former president and CEO of Holiday Retirement and a former senior managing director of senior housing properties for HCP, the REIT now known as Healthpeak Properties.
Oct. 5: Updated with information from Eclipse.