PENFIELD, N.Y. – The closure of Legacy at Grande Vie, the fifth senior living community to shut down in just two months, is raising concerns about the financial stability of its owner, NorthStar Healthcare Income.
While the first four closures were due to the collapse of the non-profit Family Service of Rochester, Grande Vie residents were paying a for-profit company nearly $6,000 a month for a one-bedroom apartment.
A Google search of lawsuits against NorthStar Healthcare reveals a company short on cash, with a lengthy list of lawyers lining up to sue NorthStar for “materially misleading business information to the investing public.”
NorthStar investors have seen shares plummet from an initial offering of $10 a share to as low as $1 on the secondary market.
Two years ago, News10NBC’s Jennifer Lewke investigated the company, uncovering court documents that showed “since the pandemic, NorthStar’s financial condition has been declining.” The documents revealed that Grande Vie is one of seven properties NorthStar owned in the Rochester area that were in foreclosure.
Those properties include Cranberry Landing in Irondequoit, Erie Station in Henrietta, Fairways in Victor, Grande Vie and Willow Pond in Penfield, Park Crescent in Greece and Parklands in Churchville.
The court appointed a receiver, Mike Flanagan, to handle payments and operations. When asked if the other NorthStar-owned properties are at risk of closing, Flanagan told News10NBC:
“No. This is the only facility that will be closed out of the portfolio of 7 for which I serve as Receiver.”
In June, another company, Welltower, bought NorthStar for $900 million in cash. However, research reveals that Welltower recently settled a lawsuit for failure to pay back rent, agreeing to pay its landlord $6.9 million and forfeiting an $8.8 million security deposit, totaling $15.7 million.
Law firms are also investigating Welltower and encouraging investors with losses to contact them, raising questions about whether the sale of one troubled company to another with its own issues bodes well for the six remaining Legacy properties in the area.
The receiver handling those six properties did not answer when asked if the sale of NorthStar to Welltower is a positive development, and leaders at Welltower did not respond to repeated requests for comment.
AI assisted with the formatting of this story. Click here to see how WHEC News 10 uses AI
Consumer Investigation: Seniors Paid Rent of 6k/mo for a 1 Bedroom. How This Senior Community Still Went Belly up WHEC.com.
Hence then, the article about consumer investigation seniors paid rent of 6k mo for a 1 bedroom how this senior community still went belly up was published today ( ) and is available on News10NBC ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Consumer Investigation: Seniors Paid Rent of 6k/mo for a 1 Bedroom. How This Senior Community Still Went Belly up )
Also on site :