Another Recession-hit CCRC sells

Nearly a decade on from the housing market collapse in 2007 and despite a relatively strong comeback in the sector, we are still writing about CCRCs just recovering from a drastic drop in entrance fee receipts in the throes of the Great Recession. That being said, three years after filing for Chapter 11 bankruptcy protection, a 223-unit CCRC located in the World Golf Village of St. Augustine, Florida, recently sold in auction to a partnership between LCS and HCP. Operated by LCPS Management, the not-for-profit CCRC opened in 2001 and reached 99% occupancy in 2006 and was 94% occupied in 2008 following a 15-cottage independent living expansion. However, during the Great Recession, more people moved out than moved in, and the repayment of refund obligations (totaling nearly $8 million in 2013) and debt service (on about $55.6 million of bonds outstanding) that were both dependent on receiving entrance fees suffered. The community emerged from bankruptcy in April 2014 under the guidance of Stutsman Thames & Markey and eventually was put to auction. The acquisition by LCS and HCP remains subject to final regulatory approval.