Buckingham Senior Living: Houston CCRC's Second Bankruptcy in Four Years

Buckingham Senior Living Community, Inc., operator of The Buckingham—a continuing care retirement community in Houston's River Oaks neighborhood—filed for chapter 11 bankruptcy protection for the second time in four years on November 17, 2025. The filing followed the failure of the 2021 restructuring assumptions to materialize, leaving the 495-unit facility unable to support its restructured debt load after post-pandemic occupancy and revenue failed to reach projected levels. The Houston-based CCRC, which emerged from its first bankruptcy in November 2021 with $28.5 million in new bond financing and commitments to repay $40.9 million in former resident entrance fee refunds "over a period of time," now pursues a 363 sale to Focus Healthcare Partners rather than a second reorganization attempt.

Focus SH Acquisition LLC, an affiliate of Chicago-based Focus Healthcare Partners, has submitted a $100 million stalking horse bid that would convert the property to an all-rental community, with zero recovery for former residents owed entrance fee refunds. Many Buckingham residents paid $100,000 or more in entrance fees and hold unsecured claims at the bottom of the bankruptcy repayment hierarchy. The case forms part of a broader CCRC bankruptcy trend that has seen at least 16 continuing care retirement communities file for chapter 11 in the past five and a half years, causing more than 1,000 families to lose over $190 million in savings.

The Buckingham: A River Oaks CCRC

The Buckingham is located at 8580 Woodway Drive in Houston's River Oaks neighborhood and opened in 2005 as part of the Senior Quality Lifestyles Corporation (SQLC) portfolio. The facility offers a continuum of care across 495 total units. The community uses an entrance fee-based model that relies on upfront fees and refund obligations.

SQLC corporate history. Senior Quality Lifestyles Corporation, the Addison, Texas-based nonprofit that developed The Buckingham, operated six life care communities across Texas and Indiana for nearly 20 years. The portfolio included Edgemere in Dallas, Querencia at Barton Creek in Austin, Mirador in Corpus Christi, The Stayton at Museum Way in Fort Worth, The Barrington of Carmel in Indianapolis, and The Buckingham in Houston. In May 2018, SQLC announced a potential affiliation with Lifespace Communities that would create the fifth-largest senior living nonprofit in the United States.

When the SQLC-Lifespace affiliation closed in May 2019 after approximately one year of negotiations, three SQLC communities joined Lifespace: Edgemere, Querencia at Barton Creek, and The Stayton at Museum Way. The Buckingham and The Barrington of Carmel were excluded from the affiliation. The Buckingham formed an independent board of directors and engaged Greystone Management Services to manage the community following the disaffiliation.

Hurricane Harvey struck Houston in 2017, damaging the facility. The Buckingham operated as a standalone entity after the SQLC exclusion and continued with an entrance fee model before the 2021 bankruptcy filing.

Entrance fee model. The Buckingham operates on a Type B entrance fee model typical of CCRCs, where residents pay substantial upfront fees—often $100,000 or more—in exchange for the right to reside at the community and access its continuum of care. These entrance fees are used to service the community's bond debt and fund ongoing operations, creating a business model that depends on continuous new move-ins to generate cash flow. Residents are contractually entitled to refunds upon departure, either in full or in part depending on the contract terms and length of residency.

The model becomes strained when new resident move-ins decline, as occurred during the post-COVID housing slowdown that affected senior living communities nationwide. As industry analysts have noted, the CCRC business model relies heavily on upfront fees to service debt and fund operations; when new move-ins decline, communities cannot generate the cash needed to both operate and honor refund obligations. In bankruptcy, residents who paid entrance fees find themselves holding unsecured claims—positioned at the bottom of the repayment hierarchy behind secured bondholders. Research indicates that families have lost more than $190 million in savings due to CCRC bankruptcies filed by at least 16 communities since the start of the pandemic.

From First Bankruptcy to Second: A Failed Restructuring

The Buckingham's second chapter 11 filing follows its 2021 case within four years after the assumptions underlying its reorganization plan failed to materialize.

First bankruptcy (2021). The Buckingham filed its first chapter 11 petition in June 2021, seeking to restructure $140.34 million in outstanding bond debt plus $16.3 million in accrued interest. At the time of filing, the community owed over $30 million to residents in contingent care entrance refunds—obligations that would come due as residents departed the community. The COVID-19 pandemic reduced occupancy across all care levels, with independent living at 62%, assisted living at 71%, skilled nursing at 57%, and memory care at just 45%.

The Buckingham emerged from its first bankruptcy on November 30, 2021, having secured $28.5 million in new bond financing to recapitalize the community. The reorganization plan committed to repaying $40.9 million in former resident entrance fee refunds "over a period of time." The company filed again in 2025.

Why the restructuring failed. The 2021 reorganization plan was premised on assumptions that did not materialize. Management and stakeholders anticipated a swift recovery from the COVID-19 pandemic that would restore occupancy levels and entrance fee collections to sustainable levels. Instead, the post-pandemic housing slowdown persisted longer than projected, and prospective residents delayed major housing decisions.

The senior living industry faced labor shortages following the pandemic, driving up wage costs as communities competed for workers. Rising salaries increased operating expenses beyond projected levels. Regulatory burden added compliance costs. The entrance fee model did not generate sufficient cash when new move-ins failed to reach projected levels.

Industry analysts have documented the wave of senior living financial distress that followed the pandemic. Senior care bankruptcy filings hit a two-year high in Q1 2025, jumping from three filings in Q4 2024 to seven in Q1 2025. Senior care accounted for more than 40% of total healthcare bankruptcy filings in the first quarter. Since 2020, at least 135 nursing homes, skilled nursing facilities, home health, and residential care firms with liabilities over $10 million have filed for bankruptcy protection.

Second filing. Unlike the first bankruptcy, which sought to restructure debt and emerge as a continuing operation, the November 2025 filing pursues a 363 sale that would transfer ownership to a new operator.

The second filing occurred in the Northern District of Texas before Judge Michelle V. Larson, with the case number 25-80051. The debtor engaged McDermott Will & Emery LLP as lead bankruptcy counsel. The community continues to operate during the bankruptcy, with residents receiving ongoing care while the sale process proceeds.

363 Sale to Focus Healthcare Partners

The stalking horse bid from Focus Healthcare Partners would convert the entrance fee CCRC to an all-rental community while providing no recovery for former residents owed entrance fee refunds.

Prepetition marketing. Prior to filing bankruptcy, The Buckingham engaged Raymond James & Associates, Inc. as investment banker to conduct a marketing process for the property. Raymond James contacted more than 1,230 potential buyers and investors. Five parties submitted preliminary indications of interest.

Stalking horse bid.

Focus SH Acquisition LLC, an affiliate of Focus Healthcare Partners, submitted the winning stalking horse bid with the following terms:

The stalking horse bid provides zero recovery for former residents owed entrance fee refunds. Many residents paid $100,000 or more in entrance fees when they moved into The Buckingham. As unsecured creditors, these former residents sit at the bottom of the bankruptcy repayment hierarchy, behind the secured bondholders whose debt will be satisfied from the $100 million purchase price.

The conversion to an all-rental model eliminates the entrance fee structure that created the community's refund obligations. Under the proposed transaction, Focus Healthcare Partners would operate The Buckingham as a rental community without upfront entrance fees. Buyer profile.

Focus Healthcare Partners is a Chicago-based real estate investment and asset management firm that invests in senior housing and healthcare real estate assets. The firm pursues acquisitions of existing properties and new construction in the senior living sector.

In July 2024, Focus Healthcare Partners completed the final closing of Focus Senior Housing Fund II, raising $370 million for senior living investments. Managing Director Mike Feinstein noted the "massive growth in 80+ population segment" as a key driver of the firm's investment thesis. The fund also targets opportunities arising from near-term limited supply growth and capital markets dislocation.

The $100 million purchase price covers a 495-unit community in Houston's River Oaks neighborhood.

Sale process. The Bidding Procedures Motion was filed on November 18, 2025, one day after the bankruptcy petition. The Official Committee of Unsecured Creditors filed an objection to the bidding procedures on December 12, 2025, raising concerns about the process and treatment of unsecured claims including entrance fee refunds. The Bidding Procedures Order was entered on December 16, 2025, setting the framework for the auction and sale.

UMB Bank, N.A., as bond trustee, has reserved the right to credit bid in the sale process. A credit bid would allow the bondholders to bid the amount of their secured debt rather than cash.

Cash Collateral and Contested Matters

The Official Committee of Unsecured Creditors has challenged both the debtor's use of cash collateral and the bidding procedures for the sale. The court appointed a Patient Care Ombudsman to monitor resident care during the bankruptcy process.

Cash collateral. The debtor filed a Cash Collateral Motion on November 18, 2025, seeking authority to use the cash generated by the community's operations to fund ongoing expenses and maintain resident care. An interim Cash Collateral Order was entered on November 19, 2025, providing adequate protection to secured creditors through replacement liens and reporting requirements.

UCC opposition.

The Official Committee of Unsecured Creditors, represented by Greenberg Traurig, LLP, has taken an active role in challenging the debtor's proposed transactions. On December 12, 2025, the UCC filed objections to the sale and to both the bidding procedures motion and the cash collateral motion.

The UCC's objections address the treatment of unsecured creditors—including the former residents owed entrance fee refunds—under the proposed sale and the cash collateral terms. The stalking horse bid provides zero recovery for these claims.

Patient care ombudsman. Given the nature of The Buckingham's operations as a healthcare provider serving residents who require ongoing care, the court ordered the appointment of a Patient Care Ombudsman to monitor the quality of care provided to residents during the bankruptcy. The court issued an order to show cause regarding PCO appointment on November 19, 2025, and entered an order directing the U.S. Trustee to appoint a Health Care Ombudsman on December 16, 2025.

Professional Retentions

CCRC Industry Context

The Buckingham's second bankruptcy occurs amid broader financial stress affecting continuing care retirement communities. The post-pandemic period has included multiple CCRC bankruptcies and financial losses for residents.

Bankruptcy wave. Industry research documents the scale of the CCRC bankruptcy trend:

State regulation of CCRCs varies widely, with 41 states imposing some form of oversight but requirements differing substantially. Only 17 states, including New York, require CCRCs to maintain reserve funds. Texas, where The Buckingham is located, is not among those states.

Broader senior living distress. The CCRC bankruptcy trend is part of a larger wave of financial stress affecting the senior living industry:

Industry reporting indicates that since 2020, 774 nursing homes have closed, eliminating 62,567 beds and displacing 28,421 residents. Consolidation has largely benefited larger operators, while smaller and standalone facilities have faced closures and filings. The Buckingham was excluded from the SQLC-Lifespace affiliation in 2019.

Industry headwinds. Industry representatives cite inadequate Medicaid reimbursement rates as a challenge, with payments failing to cover the cost of providing care. Labor shortages and rising wages have increased operating costs since the pandemic, and compliance costs continue to increase.

Funding environment. The "One Big Beautiful Bill Act" is projected to trim nearly $1 trillion from Medicaid over its implementation period. Nursing homes could face up to $500 billion in Medicare sequestration cuts from 2026 to 2034.

Key Timeline

Frequently Asked Questions

What is The Buckingham and why did it file for bankruptcy a second time?

The Buckingham is a continuing care retirement community in Houston's River Oaks neighborhood with 495 total units across independent living, assisted living, memory care, and skilled nursing. It filed for bankruptcy a second time in four years because the assumptions underlying its 2021 restructuring did not materialize. The reorganization plan projected swift COVID-19 recovery and occupancy improvement that did not occur, leaving the community unable to support its restructured debt while honoring entrance fee refund obligations.

What happened in the first bankruptcy?

The Buckingham filed its first chapter 11 in June 2021 with $140.34 million in bond debt, $16.3 million in accrued interest, and over $30 million owed in entrance fee refunds. It emerged on November 30, 2021 with $28.5 million in new bond financing and commitments to repay $40.9 million in former resident refunds "over a period of time." However, post-pandemic occupancy and revenue failed to reach projected levels, leading to the second filing.

Who is the stalking horse bidder and what are the bid terms?

Focus SH Acquisition LLC, an affiliate of Chicago-based Focus Healthcare Partners, has submitted a $100 million stalking horse bid. Focus Healthcare raised $370 million for its second senior housing fund in July 2024. The bid would convert The Buckingham from an entrance fee CCRC to an all-rental community, with the minimum overbid set at $105 million.

Will former residents get their entrance fee refunds?

No. The stalking horse bid provides zero recovery for former residents owed entrance fee refunds. Many residents paid $100,000 or more in entrance fees and hold only unsecured claims, which sit at the bottom of the bankruptcy repayment hierarchy behind secured bondholders. This reflects the broader CCRC bankruptcy trend where more than 1,000 families have lost over $190 million in savings since the pandemic.

Why was The Buckingham excluded from the SQLC-Lifespace affiliation in 2019?

When Senior Quality Lifestyles Corporation affiliated with Lifespace Communities in 2019, three SQLC communities—Edgemere (Dallas), Querencia at Barton Creek (Austin), and The Stayton at Museum Way (Fort Worth)—joined Lifespace. The Buckingham and The Barrington of Carmel were excluded from the transaction. The Buckingham subsequently formed an independent board and engaged Greystone Management Services to operate the community.

How extensive was the marketing process before bankruptcy?

Raymond James & Associates, serving as investment banker, contacted more than 1,230 potential buyers and investors during the prepetition marketing process. Only five parties submitted preliminary indications of interest—a response rate of less than 0.5%.

What is a CCRC and why are they struggling financially?

A Continuing Care Retirement Community (CCRC) offers multiple levels of care on a single campus, with residents typically paying large upfront entrance fees. The model relies on continuous new move-ins to generate cash for operations, debt service, and refund obligations. When move-ins decline—as during the post-COVID housing slowdown—communities face liquidity pressure. At least 16 CCRCs have filed for bankruptcy since the pandemic began.

What is the Patient Care Ombudsman's role in this case?

The court appointed a Patient Care Ombudsman to monitor the quality of care provided to current residents during the bankruptcy. The PCO serves as an independent monitor and reports to the court on care quality. The ombudsman can raise concerns if care quality is compromised.

Can the bond trustee credit bid in the sale?

Yes. UMB Bank, N.A., as bond trustee, has reserved the right to credit bid in the sale process. A credit bid would allow the bondholders to bid the amount of their secured debt rather than cash.

What is the broader outlook for the CCRC industry?

The senior living sector continues to face headwinds. Senior care bankruptcy filings hit a two-year high in Q1 2025, with seven filings compared to three in Q4 2024. Since 2020, 774 nursing homes have closed, displacing 28,421 residents. Medicaid funding cuts under the "One Big Beautiful Bill Act" and potential Medicare sequestration through 2034 add pressure. The industry is shifting away from entrance fee models toward rental structures.

Who is the claims agent for Buckingham Senior Living?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

For more chapter 11 case coverage, visit the ElevenFlo bankruptcy blog.