Lifecare of the South Hills, LLC, an affiliate of West Virginia-based The Orchards at Foxcrest, has secured financing and submitted its bid for $17 million, said Scott Fox, CEO of Foxcrest, while Concordia Lutheran Ministries has submitted an all-cash bid of $15 million.
Covenant, the B’nai B’rith-sponsored senior living facility located in Mt. Lebanon, filed for bankruptcy protection last January after its bondholders filed a foreclosure action.
Neither the Jewish Association on Aging, nor B’nai B’rith, nor any other Jewish agency, has submitted any bids to purchase the Covenant.
Concordia is a nonprofit operator with a substantial cash endowment, while Foxcrest is a for-profit corporation that will be borrowing millions to finance the deal.
Foxcrest has secured a bridge loan — a type of interim financing until permanent financing is in place — from the current bondholders of the Covenant, primarily U.S. Bank, said Fox.
After confirming that Concordia had submitted its all-cash bid of $15 million, Fox said, “I don’t know what that means to us.”
The auction for the Covenant is scheduled for Sept. 3.
“It’s a hurry up and wait game now,” said Fox.
(Toby Tabachnick can be reached at email@example.com)