A federal bankruptcy judge approved the $86 million sale of Port Washington senior care facility The Harborside, which includes a partial payout of deceased resident’s entrance fees.
Judge Alan S. Trust approved the sale to buyer Focus Healthcare Partners LLC on Thursday, Feb. 20 in the U.S. District Court for the New York Eastern District in Central Islip.
“We’re thrilled this deal went through, and we’re finally able to start the process of getting the Harborside on the right track,” said Focus principal Curt Schaller. “We’re particularly happy for the residents, who, after many years of volatility and uncertainty, can now feel optimism and stability regarding their future. The current residents are of the Greatest Generation and they deserve to enjoy their golden years without all the stress this situation caused.”
In tandem with the $86 million sale is $42.5 million to reimburse families of deceased residents their family member’s entrance fees. These owed entrance fees amount to $130 million.
The fees will be paid via $36.5 million from the sale of The Harborside’s Manhattan facility on the Upper West Side and $2 million by Focus Healthcare Partners.
“As the final deal was negotiated, one of the biggest pain-points for residents was that entrance-fee refunds coming from the sale of Amsterdam’s skilled nursing facility in Manhattan might not arrive for a year or longer,” Schaller said. “Although we played no role in losing their entrance fees and had no say where the funds in our $80 million bid went, we understood residents were in a vulnerable and difficult situation. We’re glad to offer an additional $2 million at the close of this deal that will go directly to residents and bring some measure of financial security in the short term.”
The sale also includes the closure of Harborside’s assisted living and memory care facilities. These include 56 skilled nursing beds, 26 enriched housing units in the assisted living area, and 18 memory support beds in the memory care unit.
These facilities will be closed on March 14, and residents must move out by that date.
The closure of this portion was previously described as temporary, with Focus expressing their intent to apply for state permits through the Department of Health to reopen these facilities in the future.
The facility’s independent living residents, though, will be permitted to stay. These units will change from the prior entrance fee-based admission to rental units. Schaller said this will remove the risks for residents associated with paying upfront fees.
Schaller said independent living residents who choose to stay will also be grandfathered in, with their current rental rates maintained and capped at a 5% increase every year.
Schaller said Focus Healthcare Partners has already committed $20 million to upgrades for the senior living facility and plans to introduce new services and amenities for residents.
“Our goal is to turn the Harborside into the highest quality rental senior living community on Long Island,” Schaller said.
Chelsea Senior Living will come in and Focus’s operating partner for The Harborside.
“They’re highly experienced in serving the needs and expectations of residents in four other senior living communities on Long Island,” Schaller said. “It’s a new day at the Harborside, and we’re feeling very optimistic and confident about the future.”
