A buyer for the largest life plan community in Illinois has been identified and is awaiting court approval on Nov. 8.
According to reporting from The Daily Herald, Encore Healthcare Services of New York had met a previously set stalking horse bid for Friendship Village of Schaumburg. The life plan community had filed for Ch. 11 bankruptcy in June this year.
If the sale is approved, closing is anticipated within 60 days, with the goal to close by Dec. 31.
A previous potential buyer, IL CCRC LC had set the minimum price floor for bids at $83.1 million in September. The ultimate purchase price is now set at $114.8 million, according to the Daily Herald.
According to Mike Flynn, CEO of Friendship Village, the non-profit is “excited” that Encore was selected as the owner.
“Their commitment to our mission and passion for caring for our residents aligns perfectly with the long-standing history of Friendship Village,” Flynn told Senior Housing News.
$15 million has been committed for capital improvements, which Flynn said will include refurbishment of common areas, addressing deferred projects and adding new amenities for projects.
With regard to the causes of the bankruptcy filing, Friendship Village of Schaumburg cited problems caused by the Covid pandemic leading to financial issues and a decreased number of move-ins.
Former residents will receive $2 million to be paid out collectively on a pro rata basis, and current residents will be entitled to a $76.6 million repayment pool for “all or a portion of their entrance fees” paid over time.
The nonprofit community has a total of 815 units consisting of assisted living, independent living and skilled nursing. At full capacity, the community can house 1,000 residents.