Troubled Rosewood Facilities Bought Up by For-Profit Lender
Greystone is the New York-based real estate, investment, and consulting firm set to take ownership over a chain of troubled Chicago-area elder care facilities currently branded under the name of Rosewood. The federal government has been in charge of Rosewood nursing homes after the previous owners defaulted on $146 million in mortgage loans, the largest default in the history of the government mortgage insurance program that provides financial support to 15 percent of the nation’s nursing homes. The previous owners, including Chicago-area rabbi, Zvi Feiner, were found guilty of improperly diverting millions of dollars in federally insured funds to other businesses and ultimately driving Rosewood into a financial crisis.
In December 2019, Greystone filed its licensing agreement with the Illinois Department of Public Health (IDPH). The group is a major lender to the nursing home industry with a $34 billion loan portfolio, making it the number-one HUD borrower in the country. Greystone also runs a group of nursing homes in Florida under the name Greystone Healthcare Management. Greystone will own and operate the facilities through a series of limited liability companies. A rebranding of the Rosewood home names is expected.