Grandbridge Real Estate Capital has been hired to sell a 329-unit CCRC in Port Washington, New York, on Long Island. The entrance-fee community opened in 2010 on 8.9 acres, and the current bankruptcy is its third, and hopefully, final Chapter 11 filing.
It is a beautiful community that had bad timing, opening at the end of the Great Recession during a very weak housing market, restructuring its debt twice, and then had to face the pandemic. In 2019, average occupancy was 93%, but it dropped with the pandemic. The community has approximately 229 independent living units, 26 assisted living units, 18 memory care units and 56 skilled beds. In-place IL rents average $5,800 per month and the units have an average of 1,200 square feet. It was originally known as Amsterdam at Harborside and has great water views of Long Island Sound.
The current debt on the community is about $168 million, or just over $510,000 per unit. Bondholders will be lucky to get 50 cents on the dollar. The stalking horse bidder is Life Care Services Communities dba LCS Real Estate with a bid of $55 million, or $169,000 per unit. While we do not know the current occupancy, this could be the turnaround deal of the year. Bids are due by 4:00 pm on August 17. Interested buyers can contact David Kliewer or Jay Jordan at Grandbridge.
