A bank is calling for a Georgia memory care community to be put into receivership and possibly be sold, saying it is owed almost $17 million for a loan.
BOKF, doing business as Bank of Oklahoma, filed a lawsuit Wednesday in the Southern District Court of Georgia, alleging that the Marshall Pines Alzheimer’s Special Care Center, owned by Evans Care Group, defaulted on a loan.
According to the bank’s filing, BOKF issued a $27.5 million loan to four borrowers “under common ownership” in October 2019: Evans, Gahanna Care Group, Mason Care Group and Mishawaka Care Group. Proceeds reportedly were used to refinance mortgage debt for Marshall Pines Alzheimer’s Special Care Center (marketed as Marshall Pines Memory Care & Transitional Assisted Living), owned by Evans; Sage Park Alzheimer’s Special Care Center, owned by Gahanna; Central Park Alzheimer’s Special Care Center, owned by Mason; and Heritage Pointe Assisted Living & Memory Care, owned by Mishawaka.
Three of the communities have been sold “after a series of defaults, forbearance agreements and related events,” according to the bank, which said the proceeds were used to pay down debt to BOKF in April and May.
Marshall Pines, in Evans, GA, is the only community that reportedly has not repaid the debt used to refinance its mortgage. As of May 31, the total due on the loan, including principal, interest and fees, was more than $16.9 million, according to the bank.
The lawsuit names Sunshine Retirement Living, or SRL, as the manager of the community, and the company is a defendant. “SRL has stated that it can no longer continue to manage the Marshall Pines facility as it does not generate sufficient revenues, investors will not support the continued operation financially, and SRL has not been paid management fees under its agreements with Evans,” according to the filing.
The bank has asked the court to appoint a receiver to take over the operations of Marshall Pines “and to collect and apply any revenue and to sell all or any part of the mortgaged property.”
Thursday, BOKF requested that the court expedite its request for a receiver, claiming “good cause” for an expedited hearing. The hearing is set for Friday, but first, by Wednesday, the bank must prove the court’s jurisdiction in the matter, according to Judge J. Randal Hall.
Evans Care Group and Sunshine Retirement Living have not filed a response yet, according to court documents posted as of Monday.
