The U.S. Bankruptcy Court for the Eastern District of New York approved RCA Healthcare Management to take over six Absolut Care nursing home sites, starting with a consulting agreement beginning March 1 with the current owners of Absolut.
Buffalo Business First reported the news last week.
Absolut filed for Chapter 11 bankruptcy protection last fall, citing a “crushing rent burden.”
“Not only has the high rent burden put a stranglehold on the debtors’ cash flow, it is impeding the debtors’ ability to invest in the improvement of their facilities,” the company argued in a filing last year.
RCA is the purchasing entity and is led by Edward Fardenblum, who became 51% owner of the six nursing homes owned by McGuire Group via VestraCare, Fardenblum’s company based on Long Island, N.Y., according to the publication.
The plan is for RCA to eventually take over operations at the Allegany, Aurora Park, Gasport, Orchard Brooke, Three Rivers, and Westfield Absolut locations later this year. The ownership applies only to the facilities’ operations, while a separate company will continue as landlord.
Fardenblum told Buffalo Business First that he plans to make an investment of “seven or eight figures” in the facilities, in addition to capitalization in systems and staffing to improve quality.
“Our plan is to drop a lot of staff in to implement changes; a robust audit process; and capital to improve physical plants,” Fardenblum told the publication.
Four other Absolut sites are being sold to Personal Healthcare LLC, Buffalo Business First reported.
Ciena Healthcare Opens New $23M SNF in Detroit
Ciena Healthcare opened the 160-bed Regency at Chene skilled nursing and rehabilitation center on February 20, the first to be built in the city of Detroit in at least 35 years, The Detroit News reported.
The $23 million project includes 46 private suites, 55 semi-private suites, four bariatric suites, and a state-of-the-art rehabilitation gym, marking Ciena’s 40th Michigan location.
Services include 24-hour nursing care and physical, occupational and speech therapy.
Tryko Partners Acquires Three Virginia SNFs, with $9M Planned Investments
Tryko Partners acquired three SNFs in Virginia: the 307-bed Woodbine Rehabilitation & Healthcare in Alexandria, the 190-bed Lexington Rehabilitation & Healthcare in Richmond, and the 66-bed Westmoreland Rehabilitation & Healthcare in Colonial Beach.
The Brick, N.J.-based private equity firm plans to invest almost $9 million in renovations and programming enhancements in the facilities. All the SNFs have retained Marquis Health Services, Tryko’s health care affiliate.
“This purchase marks our foray into Virginia, and the combined, 563 bed count has enabled us to immediately establish a significant footprint in this desirable market,” Uri Kahanow, Tryko’s director of acquisitions, said in a press release announcing the deal. “For us, this region is a natural progression, given that we have a well-established skilled nursing presence in Maryland and other key Mid-Atlantic markets to the north.”
M&T Bank, which has worked with Tryko before, provided purchase financing for the transaction.