Omega assigns LaVie master lease to Avardis, says Genesis on track with rent
LaVie Care Centers finalized bankruptcy proceedings over the weekend, and the Omega Healthcare Investors–LaVie master lease has been assumed and assigned to a new entity, Avardis, according to a Monday update from Omega.
Rent amounts under the Avardis lease will remain the same as they were in the LaVie master lease, according to the Hunt Valley, MD-based real estate investment trust.
Atlanta-based LaVie, which operated 43 licensed skilled nursing facilities or independent living communities in five states, filed for Chapter 11 bankruptcy a year ago.
Earlier this year, Omega said that it had committed $10 million of debtor-in-possession financing to LaVie to enable it to have sufficient liquidity to effectively operate its facilities during bankruptcy. An additional $1.5 million was drawn by LaVie on the loan during the fourth quarter of 2024, resulting in an outstanding principal balance borrowed of $6 million at the end of December.
As of May 1, LaVie had paid its full monthly contractual rent from June 2024 through April, an amount that increased from $3 million in January to $3.1 million in February.
Meanwhile, after failing to make its $4.2 million contractual rent payment in March, Genesis Healthcare is back on track, according to Monday’s update. Genesis reportedly paid its June contractual rent of $4.3 million.
“Additionally, we expect Genesis to continue to pay its full contractual rent for July in accordance with its contractual terms,” Omega said.
Omega CEO Taylor Pickett said last month that the REIT pulled a letter of credit to cover the shortfall. Genesis has been current since then.
As of May 1, the balance of Omega’s letter of credit was $3.5 million.
“Genesis management has indicated that their current liquidity issues stem from a tightening of their borrowing base by their asset based lender and legacy general and professional liability obligations,” Pickett said at that time.
Kennett Square, PA-based Genesis offers a variety of senior living and care services at almost 200 properties across 17 states.
