Boston investor to spend $70.5M for 5 more Rochester senior living facilities

Listen to this article

A Boston real estate investor is about to finalize the purchase of five more Rochester-area senior living facilities.

Daniel Botwinik, through The Rochester Five LLC and Golden Age Properties LLC, has agreed to pay $70.5 million for all but one of the Legacy senior communities that currently are in foreclosure.

Documents filed this week in state Supreme Court in Monroe County show that the closing will take place on or before Dec. 19 for Legacy at Parklands (2000 Park Circle Lane in Churchville), Legacy at Erie Station (1545 Erie Station Rd. in Henrietta), Legacy at Park Crescent (1000 Providence Circle in Greece), Legacy at Willow Pond (40 Willow Pond Way in Penfield) and Legacy at Fairways and Villas (681 High St. in Victor).

The properties — along with Cranberry Landing in Irondequoit and the recently shuttered Grande’Vie in Penfield — entered receivership shortly after the Federal National Mortgage Association (Fannie Mae) initiated foreclosure proceedings in July 2023.

The portfolio had been owned by Northstar Healthcare Income, Inc., a failed New York City-based Real Estate Investment Trust.

Supreme Court Justice Daniel J. Doyle on Thursday signed the order and judgment authorizing the sale. When the transaction is finalized, Botwinik will own nine senior living/care facilities across the metro area.

Fannie Mae foreclosed on the mortgages on seven Legacy properties after alleging NorthStar owed more than $100 million. The cross-collateralized properties included the five facilities about to be sold, along with Cranberry Landing and Grande’Vie.

Attorney Jason W. Myatt of Gibson, Dunn & Crutcher LLP, the law firm representing NorthStar in the foreclosure, said in an affidavit that the defendant entities have agreed to terms of the sale.

Even after the ownership transfer, a balance of more than $30 million will remain on principal alone, according to court filings. Because the mortgages were non-recourse, the lender has no other means to recover the balance.

The Rochester properties made up just part of the total indebtedness of NorthStar and its affiliates to Fannie Mae. That balance is more than $800 million, attorney Preston L. Zarlock wrote in an affidavit to the court. Zarlock is a partner at Phillips Lytle LLP, the local firm representing Fannie Mae.

Senior Living Investment Brokerage (SLIB), along with Kansas-based receiver Michael F. Flanagan, led marketing and sales efforts.

Jeff Binder, senior managing director at SLIB II, Inc., said in an affidavit that his firm solicited 237 potential buyers, with 83 indicating interest and signing confidentiality agreements.

From that pool of potential buyers, seven bids were received. A letter of intent was signed with Botwinik on June 2 and a purchase agreement was finalized on Oct. 15.

SLIB specializes in the sale of long-term care and senior living properties. The firm closed more than 80 transactions in 2024 and has closed more than 60 through the third quarter of this year, Binder wrote.

Binder also said the sale price “maximized value for the receivership estate, creditors and other stakeholders.”

The purchase agreement includes no financing contingencies and the buyer has agreed to acquisition of the properties “as is, where is, with all faults,” Binder wrote.

Botwinik, through Cougar Capital Management, Inc., paid $6,749,900 for Cranberry Landing in a sale that closed in November.

His first venture into the Rochester market came in July of 2023 when he  purchased Greece Willow Ridge Senior Living and Penfield Willow Ridge Senior Living for a total of $5.03 million from two LLCs registered to Wegman Companies. In February of this year, through another LLC, he purchased Legacy at Maiden Park from NorthStar Healthcare for $5.912 million.

Grande’Vie, the one remaining property from the Legacy portfolio foreclosure, will remain in receivership but has been closed since October.

[email protected]/(585) 653-4020