6 SC assisted-living homes owe $65 million and face foreclosure. Here’s what happens next
Six South Carolina assisted living homes face foreclosure as a bank says the owners owe more than $65 million.
The facilities, located in five counties, are owned by various companies that all trace back to operating under the “Carolina Gardens” name. The six facilities facing foreclosure are:
Carolina Gardens in Conway
Carolina Gardens in Kathwood
Carolina Gardens in Laurens
Carolina Gardens in Lexington
Carolina Gardens in West Columbia
Carolina Gardens in York
Indiana-based Priority Life Care operates the facilities. Officials from that company did not respond in time for this report.
Key Bank seeks foreclosure on the six properties, according to a lengthy lawsuit filed in Horry County court this week. The filing names more than a dozen companies as defendants, though Priority Life Care is not listed.
Key Bank says it loaned nearly $70 million in 2015 to the companies for “the purchase of six memory care and assisted living facilities.” The bank also made other funds available to the owners over the next several years.
However, the bank says the companies defaulted on a June 2019 payment and owe more than $65 million. As a result, the bank wants to foreclose on the properties.
If granted, the move would allow the bank to find a potential buyer for the facilities.
Key Bank also asked the judge to appoint a receiver who would help sell the care centers. The filing states the receiver would also manage and operate the facilities — initially, it would be in conjunction with Priority Life Care.
The foreclosure request also notes that if the bank finds a buyer the local sheriff will have the ability to eject people from the property — except for the residents.
This story was originally published January 17, 2020 at 2:36 PM.
