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Port Washington’s The Haborside makes deal for $80M sale

the harborside
The Amsterdam at The Harborside in Port Washington
Long Island Press archives

Port Washington’s financially troubled retirement home, The Harborside, has agreed to sell the facility to a Chicago-based investment group for $80 million.

The sale, which would end the facility’s nearly two-year bankruptcy case, still has to be ruled on by the judge.

The Port Washington retirement home, which has filed for bankruptcy three times in the past decade, houses nearly 200 residents with an average age of 90.

The transfer of ownership to buyer Focus Healthcare Partners LLC would at least temporarily close its assisted living and memory care units, forcing residents to move out. Independent-living residents would still be able to stay.

A letter from Polly Gates, an independent living resident and chair of the Harborside Residents Council, stated that the facility council supports the sale.

“At this point, the purchase of The Haborside by Focus is the only hope for the residents in Independent Living,” Gates wrote. “We want to remain in our apartments, be able to continue to enjoy friendships we have made over the years and participate in the growth of a new community.”

Gates said that while the council is still “extremely angry and frustrated” that the prior sale was terminated, no sale at all would force everyone to move out. She said that while this comes at a cost to those living in assisted living and memory care, it is better than vacating all units.

The facility’s health center includes 56 skilled nursing beds, 26 enriched housing units in its assisted living area, and 18 memory support beds in the memory care unit. Under the sale, these units would be closed.

One of the residents living within the health center is Sandra Curtis, whose husband, Bob Curtis, resides in The Harborside’s independent living. Bob Curtis is currently just an elevator ride away from his wife of 59 years – a reason why they chose to move to The Harborside.

Under this sale, Sandra Curtis would have to vacate her home in the memory care unit, separating the husband and wife. While other senior care facilities on Long Island would also provide the Curtis’ to live in the same facility, Bob Curtis said his family invested their funds into The Harborside and is not financially able to move with his wife.

“Am I upset? Yeah,” Bob Curtis said. “Have I been emotionally crushed by all of this? Yeah. I fight through it every day.”

Bob Curtis said he and his family are evaluating their options but that the whole situation is wrought with emotion. He said he has been left with many unanswered questions about the potential sale and that he has not been able to speak with someone from the purchasing party.

Court documents, though, state that Focus Healthcare Partners intends to apply for the necessary licenses for assisted living and memory care in the future.

Curt Schaller, a principal at Focus Healthcare Partners, said he is sympathetic to the situation and that the company is doing what it can to accommodate the residents.

“As the potential future owners of the Harborside, we deeply empathize with the residents,” Schaller said. “It’s why despite having no role in creating this financial crisis, our offer for purchase proactively lessens the burden on them by grandfathering in current residents at rates far below market, capping future increases to current residents at 5% per year, and investing $20 million in capital upgrades to the facility. We also plan to raise the Harborside’s resident services to the highest level, including enhanced activities, dining, wellness, and more.”

The sale would also not make Focus Healthcare Partners liable to pay out the $130 million in entrance fee refunds for deceased residents.

“The contractually owed entrance fee refund in my family’s case is two and a half years past due,” a letter to the judge from Dina W., whose mom resided at the facility, said. “It has never been explained where our money is, but clearly, it was not escrowed as we expected.”

Schaller said Focus Healthcare Partners can’t right a wrong not done by them.

“While we can build a better future at Harborside, unfortunately, we can’t undo money lost by others that led to this bankruptcy,” Schaller said. “As the purchasers in this bankruptcy process, we can’t direct who receives the sale proceeds. That allocation is a decision for the seller, bondholders, and residents who are owed entrance fees, overseen by the court. We are hopeful that the seller, the bondholders, and the residents can reach a resolution that is satisfactory to the court. A Chapter 7 bankruptcy liquidation would be a true worst-case scenario for residents.”

The Harborside filed for bankruptcy in March 2023.

It had a sale agreement with Life Care Services in December 2023, but the sale was terminated after the state Department of Health in October wrote that the property transfer was “abandoned and withdrawn,” according to court documents.

Three months later, the sale was awarded to Focus Healthcare Partners, the only bidder for the property.

The two parties agreed on the sale on Jan. 22 and filed in court on Jan. 27.

The $80 million sale also includes a potential $5 million discount if fewer than 46 residents continue to rent at the facility after the transfer.

Current independent living residents will maintain their monthly rent amounts under the transfer based on their service agreements as of Dec. 18. Annual increases are capped at 5%, according to court documents.

Federal bankruptcy Judge Alan S. Trust is scheduled to rule on the sale at a Feb. 12 hearing.