The Harborside Senior Living Facility Seeks Court Approval for $80M Sale to SR HSG Acquisitions

Conductor

Amsterdam House Continuing Care Retirement Community, Inc., operating as The Harborside, has filed a motion seeking approval for an $80 million private sale to SR HSG Acquisitions, LLC in the U.S. Bankruptcy Court for the Eastern District of New York (Case No. 23-70989).

The motion, filed by DLA Piper LLP (US), outlines a significant transformation for the Port Washington, New York-based facility. The proposed transaction would convert The Harborside from a continuing care retirement community into a multiple-resident senior rental property, with plans to seek assisted living and memory care licenses in the future.

Key terms of the proposed sale include:

  • $80 million cash purchase price, subject to adjustments
  • $4 million funding for administrative claims
  • Protection of current residents through rental agreements matching their existing monthly service fees, with annual increases capped at 5%
  • $2.75 million good faith deposit from the buyer

The sale comes after a previous failed transaction with LCS Real Estate LLC, which was terminated following regulatory hurdles with the New York Department of Health. The debtor, which filed for Chapter 11 protection in March 2023, has exhausted $10.25 million in member contributions and depends on additional post-petition financing to continue operations.

A hearing on the sale motion is scheduled for February 12, 2025, with objections due by February 5, 2025.

This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 30 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.

Link to full document: Debtor's Motion for Entry of an Order (I) Approving the Asset Purchase Agreement Between the Debtor and SR HSG Acquisitions, LLC; (II) Authorizing the Private Sale of Substantially All of the Debtor's Assets Free and Clear of Liens, Claims, Interests and Encumbrances, Except for Certain Permitted Liens and Assumed Liabilities; (III) Authorizing the Assumption and Assignment of Certain Executory Contracts and Unexpired Leases in Connection Therewith; and (IV) Granting Related Relief

Document length: 30 pages



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