After Year of Bankruptcy Woes, Dallas Community Edgemere Changes Hands, Management

Nearly one year after Lifespace Communities filed for Chapter 11 bankruptcy, ownership and management of its Edgemere community has changed hands.

Bay 9 Holdings, an affiliate of Lapis Advisers, is set to buy Edgemere and task operator Long Hill at Edgemere, a wholly-owned subsidiary of United Methodist Homes, with managing the community. Shelton, Connecticut-based Long Hill also provides senior living management services to 11 communities in Texas.

Terms of the deal were not disclosed.

The news comes months after Des Moines-based Lifespace communities agreed to fund a sizable chunk of the community’s restructuring plan as the property shifted to a rental payment structure for residents.

UMH President and CEO David Lawlor told Senior Housing News that the nonprofit and operating subsidiary are “very much looking forward to this assignment” and plans to use its experience “helping to stabilize challenging situations” to turn around the community.

“We have been actively involved in the Texas market in recent years and are well-positioned to support this terrific community,” Lawlor told SHN. “We have enjoyed getting to know the residents of Edgemere and have been impressed with the dedication of the on-site team.”

Edgemere is a Dallas-based continuing-care retirement community (CCRC) that had been owned and operated by Des Moines, Iowa-based Lifespace Communities when it ran into financial turbulence amid the Covid-19 pandemic.

The Edgemere reported 74% occupancy in 2021, a sharp decline from its 2018 mark of 93% which lead to an annual loss of about $30 million dollars that year.

Lifespace late last year agreed to fund more than $143 million of the communities’ restructuring plan which was part of bankruptcy court proceedings. That payment was used to refund entrance fees paid by residents who did not receive them.

On top of refunding resident entry fees, the financial restructuring of Edgemere also included the requirement that it to shift from an entry-fee model to a rental fee model.

As for current Edgemere residents, the new deal is a “home run” — at least according to Edgemere Resident Association President Jim Eckelberger.

“Our home at Edgemere has always been the best senior living community in DFW; bankruptcy held that at risk for the past year,” Eckelberger said in a press release announcing the deal. “Now the risk is gone and the new management company, Long Hill, has committed to bettering what is already a marvelous place to live.”

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