Lifespace Communities will Contribute Millions to Support Edgemere’s Former and Current Residents
Consistent with its charitable mission and unwavering commitment to residents, Lifespace Communities announced today its intent to fund up to $143.4 million as part of Edgemere’s financial restructuring plan. These funds will support current and former residents of Edgemere and ensure their entrance fee refunds owed under their Life Care agreements are paid in full. Without this significant contribution from Lifespace, Edgemere resident refunds would likely have been lost due to the current restructuring plan to convert Edgemere from an entrance fee Life Care community to a rental community.
Edgemere’s situation is unique and complex, primarily because the community’s property is subject to a 55-year ground lease that was in place prior to Lifespace owning and operating Edgemere. Due to the finite term of the ground lease, Edgemere is unable to operate as a Life Care community in perpetuity, which is an essential component of a Life Care model. To address this issue, the proposed restructuring plan contemplates the sale of Edgemere to a new buyer who will transition the community from a Life Care community to a rental community. This transition will require the termination of former and current residents’ Life Care agreements, which will be replaced by new rental agreements. As a result of the termination of these agreements, current and former residents would not otherwise receive entrance fee refunds owed to them, unless, as company leadership explained, Lifespace steps in with support.
“Lifespace is stepping in to fill this gap and fund the payment of these refunds that would not otherwise be paid through the restructuring plan,” said Jesse Jantzen, Lifespace President & CEO. “This is truly a rare and extraordinary circumstance. Accordingly, Lifespace feels compelled by its long-standing charitable mission and deep commitment to support its residents to deliver an extraordinary solution to mitigate the impact felt by current and former residents as a result of this unique and challenging situation.”
Lifespace intends to make each former and current resident “whole” over time, Jantzen said, and he noted, “This contribution is consistent with Lifespace’s core mission of doing right by its residents.”
With more than 47 years of history operating continuing care retirement communities, Lifespace has the financial foundation and strength to make these contributions without compromising the health of the enterprise or impacting its current and future residents in its other communities. Additionally, to further support Edgemere’s residents through the transition to a new owner, Lifespace has offered to continue management of Edgemere for a transition period, which will depend on the new owner’s desires to retain Lifespace as manager after the sale.
These unprecedented actions demonstrate Lifespace’s steadfast commitment to supporting its communities and residents and fulfilling its charitable mission of providing residents with the highest quality senior living.
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