The Christian Horizons bankruptcy deal is coming along, with four stalking horse bidders selected for portions of the Midwest senior care portfolio. The faith-based, not-for-profit organization filed for Chapter 11 bankruptcy on July 16, 2024 in the U.S. Bankruptcy Court for the Eastern District of Missouri, and the live auction is set for November 12, 2024.
Christian Horizons’ portfolio offers the full continuum of care and includes more than 1,200 independent living, assisted living, memory care and skilled nursing units/beds across 11 communities in four states. There are seven locations in Illinois (Forsyth, Washington, Lincoln, two in Carmi and two in Springfield), two in Indiana (Brownstown and Crown Point) and one each in Iowa (Council Bluffs) and Missouri (Joplin). Four of the locations are CCRCs, two are IL/AL communities, one AL community, two supportive living communities, one majority-SNF and one low-income housing property. They range in age from 60 years to 10 years old, and average occupancy was around 80% across the portfolio, with a small operating loss. Also included is an Illinois-based pharmacy business that serves the entire portfolio along with a few small facilities in Central Illinois.
The portfolio has been broken up into four subsets, although parties may bid on individual properties at the auction. Ambassador Healthcare LLC was selected as the stalking horse bidder for the two Indiana communities for $35 million, or $119,500 per unit/bed, plus the assumption of entrance fees and other assumed liabilities. CH Arcadia Holdco, LLC was selected as stalking horse bidder for the Illinois portfolio including four properties and the pharmacy business, for $16 million, or $33,800 per unit/bed, plus assumed liabilities less outstanding entrance fees to be assumed.
For the two supportive living communities and low-income apartments, RNG BEH CN CL MG LLC is the stalking horse bidder for $10.9 million, or $83,800 per unit, less assumed HUD loans plus other assumed liabilities. Lastly, Ocean Healthcare Services LLC and Erez Senior Living, LLC is the stalking horse bidder for the Iowa and Missouri assets for $850,000, or $2,600 per unit, plus the assumption of some considerable entrance fee obligations and other assumed liabilities.
Ziegler has been retained to sell the portfolio and wholly owned institutional pharmacy company. Auctions for individual facilities or subset lots will be conducted in person in Chicago on November 12th. Parties who wish to submit an overbid for certain assets in the portfolio are encouraged to review the bid procedures provided here and submit a qualified proposal by no later than November 7th.
For any questions, you can contact Nick Glaisner and Ryan Anders of Ziegler at nglaisner@ziegler.com and randers@ziegler.com.
