Another Continuing Care Retirement Community Bites the Dust?

Do you have a loved one who is interested in Continuing Care Retirement Communities (CCRC)s? He or she should proceed with caution. Here’s an example of another CCRC in financial trouble –

Air Force Village West was a CCRC for retired military officers, located between downtown Riverside, California, and March Air Force base.

Twenty-five years after its opening, the property had too many unoccupied residences, and was located in a place that was not ideal for enough veterans. The debt was too high and the land had significant deed restrictions which severely limited what could be done with the property.

Today, they changed the name of the facility to Altavita Village and they have opened it to anyone who wants to move in and can afford it. Occupancy is up and their cash flow is being replenished. However, despite the fact that things are looking up, they have also not made any payments on their 61-million-dollar bond obligation for almost a year.

Bondholders currently believe there is sufficient reason to force the property into receivership. A for-profit senior living company that has the financial strength to take this project on that is doing due diligence at this moment.

Read the article, The Malingering Collapse of Air Force Village West – Part One, to learn more about the situation described above and to learn how this could have happened. Also, be sure to check out our blog posts about CCRCs –

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