Avenir Retirement and Encore Senior Living will continue to manage Arté Resort, a 170-unit luxury retirement community in Scottsdale, while Avenir is going through a Chapter 11 reorganization. Avenir, the owners and builder behind Arte Senior Living LLC, had been in negotiations with Square Mile Capital Management LLC of New York to modify or purchase the construction loan for Arte Resort. SMCM is an affiliate of SMA Portfolio Owner LLC, which purchased a portfolio of loans, including the Arte Resort loan, from Bank of America in September 2011. After months of negotiations, Avenir was forced into Chapter 11 to protect its assets and to maintain the standard of living and care it promised to its residents.
"We fully expect to come out of Chapter 11 very quickly and it will be business as usual throughout the process," said David Les Craik, managing partner of Avenir Communities, in a press release. "Our residents and future residents should not see any difference in their living situation during this transition."