Court Approves Edgemere Sale Plan
A bankruptcy court approved a plan March 27 that puts the luxury retirement community Edgemere under new ownership and returns deposits to families of residents.
“The bankruptcy court approved confirmation of the plan in a bench ruling [March 27],” said Jeremy Johnson, an attorney for the retirement community. “The court will be entering an order confirming the plan and we anticipate closing the sale in around 45-60 days.”
As part of the plan, Bay 9 Holdings LLC is acquiring Edgemere for $48.5 million and converting it to a rental model.
It also requires Edgemere’s current owner LifeSpace Communities to reimburse about $144 million in entrance fees for current and former Edgemere residents. LifeSpace had previously announced its intent in December to contribute up to $143.4 million that would go in part toward entrance fee refunds for current and former Edgemere residents.
Long Hill at Edgemere LLC (Long Hill) has been named manager of the property. Long Hill is a subsidiary of United Methodist Homes, a Connecticut-based nonprofit. It also provides management services to 11 Texas-based senior living communities.
“We are excited to become the new managers of Edgemere. In recent months, we’ve had the opportunity to meet and work with many residents and members of the leadership team, who have impressed us greatly,” said Long Hill and UMH CEO David Lawlor. “We are honored to be selected to support the Edgemere community and help elevate it to its full potential.”
Edgemere Resident Association President Jim Eckelberger praised the court’s approval of the plan.
“Edgemere residents hit a home run yesterday when the Federal Bankruptcy Court approved a plan that ensures the investments of the residents are whole,” Eckelberger said in a statement. “That is wonderful news for all who call Edgemere home.”
Edgemere cited impacts from the COVID-19 pandemic and the 2021 winter storm when it filed for bankruptcy in 2022. The proceedings were contentious from the start, with Edgemere suing its landlord, Intercity Investments, simultaneously with its bankruptcy filing in April 2022 and alleging in court documents that Intercity was working with Kong Capital to terminate its 50-plus-year ground lease.
