Near completion, Elderwood sale valued at $141M

March 20, 2012 Updated Mar 20, 2012 at 7:08 AM EDT

By WKBW News
By Business First by Tracey Drury

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March 20, 2012 Updated Mar 20, 2012 at 7:08 AM EDT

A $141 million acquisition of nine Elderwood Senior Care residential facilities in Western and Central New York is expected to take another step forward this week with approvals at the state level.

The state Department of Health has recommended approval of a series of applications that would establish Post Acute Partners Acquisitions LLC as new operator for nine Elderwood residential health-care facilities, including seven in the Western New York region.

First announced in April 2011, the deal includes selling 16 properties to Post Acute Partners, a New York-based operator of health-care facilities. The deal does not include Elderwood's Heathwood facility in Amherst nor its Penfield site near Rochester. The terms of the deal were not publicly announced but are included in the new operator applications filed with the State Department of Health.

According to the DOH application, the total sale price of the residential health-care facilities is $80.1 million, including $49.7 million for real estate and $30.4 million for site operations. Included in the deal are Elderwood at Wedgewood in Amherst, valued at $9.9 million; Elderwood at Riverwood on Grand Island, $7.65 million; Elderwood at Lakewood in Hamburg, $10.8 million; Elderwood at Linwood in Lancaster, $3.7 million; Elderwood at Birchwood in Liverpool, $7.7 million; Elderwood at Maplewood in Cheektowaga, $10 million; Elderwood at Crestwood in Wheatfield, $10.3 million; Elderwood at Oakwood in Williamsville, $12.1 million; and Elderwood at Tioga in Waverly, $8.1 million.

The change in ownership also includes five adult care facilities, two independent housing companies and related real property companies. According to the DOH application, the total sale price for the adult care facilities totals $43.8 million, including: Glenwood, $10 million; Maplewood, $7 million; Rosewood, $8.3 million; Tioga, $3.9 million; and Westwood, 14.5 million. Another $17.6 million comes from the sale of the Crestwood and Maplewood independent living facilities, with total purchase prices of $12.6 million and $5 million, respectively.

ElderWood, a privately-held company, was formed by the Chur family in 1978. Four members of the Chur family are listed in the DOH paperwork as owners, with varying interests: Robert Chur, Carol Chur, Carla Chur Suero and Kelly Chur Henry. Robert Chur is currently president and CEO.

Elderwood is among the region's largest privately-held companies, with more than 3,000 employees and 2009 revenues of $155.8 million, up 21 percent from 2008 when it reported $128.6 million in revenues.

The DOH has recommended approval of all the residential health care facility ownership changes, which will be considered March 22 by the Committee on Establishment and Project Review within the Public Health and Health Planning Council. The committee will also consider applications from Post Acute Partners for home health agency licenses for Maplewood; Westwood; Rosewood; and Tioga.

The projects also require approval by the full council at its April meeting.

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