Eclipse Senior Living will soon be no more, as the company, which was founded in 2017, stated that it plans to permanently shut down its operation, effective (if it goes according to plan) by the end of the first quarter of 2022. Ventas owns a 34% stake in the company and announced that it plans to transition the operations of its 90 communities managed by Eclipse to other providers. In perhaps another way of saying “good riddance,” the REIT stated that the communities “were not contributors to [Ventas’] overall NOI or its SHOP NOI in the second quarter 2021.” Ventas expects to incur certain one-time transition costs as it moves the communities to eight new operators.
This will end CEO Kai Hsiao’s tenure at Eclipse, which started in November 2017 after leading Holiday Retirement for a couple of years and briefly moving on to HCP, now Healthpeak Properties. Eclipse management owns the remaining 66% controlling interest in the company. They tried to sell the company, but either the price was too high or the quality and locations of the assets did not entice any buyers.
