The bankruptcy sale of Midwest Christian Villages (dba Christian Horizons) has finally come to a close with the sale of the final two seniors housing assets in the portfolio. The majority of the company’s other assets closed in multiple transactions earlier this year. Congratulations to Nick Glaisner and Ryan Anders of Ziegler for seeing the whole deal over the finish line.
Christian Horizons, one of the nation’s largest not-for-profit, faith-based organizations delivering skilled nursing, assisted and supportive living, independent living, and pharmacy services to seniors in Illinois, Iowa, Indiana and Missouri, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in July 2024. It continued to operate as usual throughout the restructuring process but began to solicit and receive bids from buyers in a marketing process run by Ziegler. The organization’s legal advisors were Dentons US LLP and Summers Compton Wells, and its chief restructuring officer was Healthcare Management Partners, LLC.
The portfolio includes more than 1,200 independent living, assisted living, memory care and skilled nursing units/beds across 11 communities in four states. There were 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 ranged 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 was broken up into four subsets, and the last two assets to sell were the two supportive living communities in Illinois totaling 109 units. RNG BEH CN CL MG LLC (BEH Partners) was the original stalking horse bidder and ended up the buyer. The deal closed following receipt of HUD TPA approval. The price amounted to the assumption of the HUD loans, which totaled approximately $8.4 million, or $77,000 per unit. An affiliate of BEH Partners also purchased Christian Horizons wholly owned institutional pharmacy company, SeniorCare Pharmacy. Ziegler also worked in coordination with its Pharmacy practice to ensure a smooth transition for the communities and a successful outcome for the Christian Horizons institutional pharmacy team.
