Chicago-based real estate investment trust Ventas announced Tuesday that it will transition operations of 90 senior living communities to eight new management firms from Eclipse Senior Living. Most of the transactions should be completed by the end of the year.
According to Ventas, the communities “have been adversely affected by the COVID-19 pandemic” across 20 states, and their operations will be inherited by new managers “under incentivized management contracts.”
Ventas owns 34% of the management firm, a representative from Ventas told the McKnight’s Business Daily, and Eclipse was party to the “strategic decision.” The communities did not contribute to Ventas’ overall net operating income or its senior housing operating portfolio in the second quarter of 2021, according to the REIT. The idea behind the transitions is to match the right asset with the right market and the right operator, Ventas said.
All 90 Ventas properties being moved to new managers operateacross 20 state under the Elmcroft name, a representative from Ventas told the McKnight’s Business Daily.
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.”
Sharing the original McKnight’s Senior Living article about the news on LinkedIn, one Eclipse employee said that, despite the shock of the news, it “has been an honor to work in this industry during this pandemic rollercoaster.” Another employee called working at Eclipse “an incredible journey.”
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.”
