By Steve Moran

Pacifica Senior Living: Bankruptcy of Management Entity – Not Company Collapse

It was shocking news … that Pacifica Senior Living had “gone belly up.” 

I was particularly surprised because I know a few of the leadership folks and understood that they were still actively pursuing acquisitions.

I talked to Adam Bandel, Managing Director, Seniors Housing at Pacifica Companies. He tells me the reports are not quite right.

Actually, it’s dramatically different from what’s been reported.

The Real Story

Here’s what actually happened: Pacifica elected to dissolve one management entity – Pacifica Senior Living LLC – through bankruptcy. That entity managed approximately 20 facilities in California, a small subset of Pacifica’s nearly 100 communities nationwide.

He went on to explain this was a business decision driven by “two outrageous lawsuits that occurred that were runaway trial verdicts” in the same jurisdiction where a number of other highly regarded senior living operators  have recently been handed massive verdicts.

Crucially, the bankrupt entity “doesn’t own anything, it’s simply just a management entity.” According to Pacifica, this management entity has no ownership interest in any buildings, meaning there’s no impact on residents, staff, or the company’s operations.

Pacifica Companies

Pacifica remains privately owned by a family company that directly owns most of its assets. Their communities are concentrated on the West Coast and in the southeast United States, with each facility independently owned under its own LLC structure.

The confusion appears to have started with a local newspaper article that conflated Pacifica Companies (the parent company) with Pacifica Senior Living LLC (the management entity being dissolved). This created what Adam called “a lot of confusion in the marketplace.”

What’s Next?

Some of the communities previously managed by this entity will continue to be operated by the Pacifica team,  others may be moved to third-party operators. Adam noted that, over the past three years, Pacifica has been expanding its relationships with third-party operators like North Star, Brightwater, and Calson Management.

The entire situation highlights how complex ownership and management structures within senior living can lead to misunderstandings when legal events occur. It also reveals how quickly misinformation can spread in our industry.

For those hoping to pick up Pacifica buildings on the cheap due to a perceived financial crisis – the executive was clear: “We’re not going to be selling anything.”

The company remains committed to growth, with ongoing negotiations to acquire additional facilities while maintaining what it describes as “high standards of care.”