The Department of Housing and Urban Development is on the verge of selling a group of nursing home chains to Greystone, a New York real estate finance firm, following the largest default in the history of a government mortgage insurance program that supports a large portion of the nation’s nursing home industry.
HHS took over Rosewood Care Centers, Chicago-area facilities, 18 months ago after the previous owners defaulted on $146 million in government-guaranteed mortgages. Greystone was servicing Rosewood’s mortgages when the former owners defaulted.
A New York Times article this week reported that a HUD spokeswoman said the department could not comment until the sale is complete. Court filings reveal there were four bids for the properties, which are valued at $95 million, the newspaper reported.
