Soreide Law Group is currently representing clients of B.C. Zielger and Company, who were sold bonds in The Groves in Lincoln, Inc., many of whom are senior citizens who were sold these bonds as safe income producing investments that were suitable for their retirement portfolios. The Groves in Lincoln, Inc., a not-for-profit owner and operator of a 168-unit independent living community in Lincoln, Mass., filed for Chapter 11 bankruptcy defaulting on $88.4 million of tax-exempt bonds.
Masonic Health System (NYSE:MHS) of Massachusetts, Inc. and New England Deaconess Association - Abundant Life Communities, Inc. (DALC) were the two sponsoring members of the Groves corporation with 80% and 20% membership interests, respectively.
This community is suffering the same fate as many senior living projects built during the real estate downturn.
Benchmark Senior Living, a Wellesley-based owner and operator of senior-living communities, has gotten approval from a bankruptcy court to pay up to $35 million for The Groves of Lincoln.
Benchmark has agreed to pay $30 million in cash to for The Groves and promised to add in up to $5 million more if a plan to expand the community is approved by Lincoln officials by June, 2015. That contingency payment drops down to $2.5 million if the approval is awarded between June, 2015, and June, 2016, and zeroes out after.
Benchmark is an active player in the New England senior-housing market. In 2011, the company teamed up with Health Care REIT, an Ohio-based real estate investor which operates a handful of Massachusetts subsidiaries, to pay $890 million for 34 assisted-living communities, including 13 in Massachusetts.
Based in Toledo, Ohio, Health Care REIT owns approximately 600 senior care and health facilities throughout the United States.
If you are a senior citizen or other inexperienced investor who has suffered financial losses through the purchase of The Groves In Lincoln, Inc. due to the recommendations of B.C. Zielger and Company, call Soreide Law Group for a free consultation with an attorney at: 888-760-6552.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.