When Karen Holcomb decided it was time to move into a retirement community, she was immediately drawn to The Stayton at Museum Way.
The Fort Worth center was near her children and grandchildren, and it provided high-quality care that met her and her husband’s health needs. They didn’t think much about moving anywhere else, Holcomb said. She has been living at The Stayton for almost nine years.
“It is a beautiful facility and for anyone approaching their senior years, it is a continuing care type of retirement community,” Holcomb said. “We saw the importance in that.”
But, in November 2019, Holcomb was shocked when The Stayton filed for Chapter 11 bankruptcy. The announcement was “unsettling” for many residents, but the Holcombs knew everything would be worked out, she said.
Following the closing of the bankruptcy case, Buckner Retirement Services, which is part of Buckner International, was declared the prevailing party and acquired The Stayton. This is the seventh retirement facility to be owned and operated by Buckner in Texas.
Buckner’s acquisition of The Stayton comes at a time when more businesses and private sectors invest in senior housing facilities. Senior living is a booming industry, said John Marshall Hillman, executive director with JLL Value and Risk Advisory of Fort Worth.
The Stayton’s financial past
Opened in 2011, The Stayton is an 11-story facility located near the West 7th Cultural District. It consists of 188 independent living units, 46 nursing units, 42 assisted living units and 20 memory care units. The entrance fee for the facility starts at $535,145, but price is subject to inventory availability, according to The Stayton’s website.
The Stayton’s previous owner, Lifespace Communities, acquired the property in 2019.
When The Stayton filed for bankruptcy the same year, filings showed the facility’s adjusted net operating margin was about 54% less than initially projected. The community cut costs, but faced financial pressures “due to highly competitive market conditions,” according to The Dallas Morning News.
The Stayton had $124.3 million in assets and $222.7 million in liabilities, which included $110.4 million of long-term municipal bond debt, $102.3 million in future entrance fee liabilities and $2.6 million in resident refund obligations.
Residents and their families are owed total amounts ranging from $780,000 to $1.2 million, according to the Morning News.
Holcomb said residents were made aware of The Stayton’s attempt to restructure bonds and that the property would be put on the market. Holcomb was grateful that Lifespace and The Stayton were transparent and communicative through the process, she said.
The bankruptcy case closed in March 2020.
“It has been an honor serving the residents and team members of The Stayton as a part of the Lifespace family, and we look forward to watching them continue to thrive under new ownership,” Jesse Jantzen, president and CEO of Lifespace Communities, said in a statement. “We will be partnering with Buckner to ensure a seamless transition for our residents and team members.”
Why are businesses interested in senior living?
The growing investment in senior living, which is an alternative asset, is fueled by a growing number of older adults becoming more interested in moving into this type of housing, said Hillman.
What is an alternative asset?
An alternative asset is a financial asset that does not fall into one of the traditional investment categories, including stocks, cash or bonds. Instead, it includes investments like real estate, medical offices, artwork and tradable collectibles. Over the past 10 years, investment into alternatives has risen from 8.4% to 13.1%, according to JLL’s 2024 Seniors Housing and Care report.
“Previously, a lot of the elderly wanted to live in their home forever, but it’s not like that anymore,” he said. “The easiest thing for them to do is to sell their house and move into a facility with luxury amenities. It’s not taboo anymore.”
Instead of building new facilities, businesses and private investors prefer to purchase older ones and renovate them to meet the needs of those older adults, said Hillman.
“It’s easier for them to make those communities more attractive for residents as opposed to taking 18 to 36 months to build a new facility, go through the permitting process and find land,” he said. “These facilities already have a built-in base with residents.”
Investors are also attracted to luxury senior living facilities because their residents don’t often live there too long, and there are continuing opportunities for new people to move in. North Texas is a hot market for this type of housing as the population grows, said Hillman.
“The population here is booming, and when you have adult children who are coming here for jobs and to raise families, you’re going to get that proliferation of their parents coming to follow,” he said.
Fort Worth’s population is approaching 1 million after adding more residents than any other city in the country in 2022, according to new census data.
‘Continue its legacy’
Through the acquisition, Buckner will take on the full assumption of all Stayton resident agreements and entrance fee refund obligations and a significant reduction in The Stayton’s bond indebtedness.
The transaction is subject to regulatory approval and customary closing conditions. The deal is expected to close in June 2024 but may occur as soon as late April. Conversations surrounding the acquisition of The Stayton started nearly a year ago, said Charlie Wilson, president of Buckner Retirement Services.
“I know the Fort Worth market and (The Stayton) is a great community in a great location right off 7th Street and the Cultural District,” he said. “This is an opportunity to do well with a well-established community.”
Buckner does not plan to change The Stayton, but only wants to work to enhance amenities for residents, said Wilson.
“We want to come in and continue its legacy and make it even stronger,” he said.
Holcomb said she’s excited for what Buckner will bring to The Stayton and knows the company has a good reputation in the senior living industry.
“I think it’s important for them to keep our lives stable and to let things settle,” she said. “I’m always looking on the more optimistic side and I really think this is going to be a positive change.”
David Moreno is the health reporter for the Fort Worth Report. His position is supported by a grant from Texas Health Resources. Contact him at david.moreno@fortworthreport.org or @davidmreports on X, formerly known as Twitter.
At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
Related news
Noncommercial entities may republish our articles for free by following our guidelines. For commercial licensing, please email hello@fortworthreport.org.
