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Spectrum Retirement Communities and 70+ Subsidiaries Face Court Proceedings

Spectrum Retirement Communities, LLC and more than 70 affiliated limited liability companies spanning multiple states are named as parties in court proceedings. The case involves a complex network of operating entities and real estate holding companies that manage senior living facilities across Arizona, Ohio, Texas, Illinois, Kansas, and other states.

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Case Information

Case No.:
25SC433

Key Takeaways

  • More than 70 Spectrum Retirement-affiliated LLCs named as parties in court proceedings
  • Entities span multiple states including Arizona, Ohio, Texas, Illinois, Kansas, and others
  • Complex corporate structure includes both facility operators and real estate holding companies
  • Case demonstrates the intricate legal frameworks used by major senior living operators

Spectrum Retirement Communities, LLC and an extensive network of more than 70 affiliated limited liability companies are involved in court proceedings that highlight the complex corporate structure of one of the nation's senior living operators. The case encompasses entities operating across multiple states, revealing the intricate web of subsidiaries that characterize modern senior care operations.

The court filings name Spectrum Retirement Communities, LLC as the primary entity, along with dozens of operator companies that appear to manage individual facilities or regional operations. These include Anson Operator, LLC; Anthem Operator, LLC; Burr Ridge Operator, LLC; and Carmel Operator, LLC, among many others. The naming convention suggests these entities operate specific senior living communities in their respective markets.

The corporate structure reveals a sophisticated approach to senior living operations, with separate entities for different functions and locations. Many of the named companies follow a pattern of "Operator" LLCs, which typically handle day-to-day facility management, alongside "Owner" or "Opportunity" LLCs that appear to hold real estate interests. This structure is common in the senior living industry, where operators often separate real estate ownership from operational responsibilities.

Geographically, the entities span a significant portion of the United States. State-specific subsidiaries include SRC of Arizona, LLC; SRC of Colorado, LLC; SRC of Illinois, LLC; SRC of Indiana, LLC; SRC of Kansas, LLC; SRC of Missouri, LLC; SRC of New Mexico, LLC doing business as Spectrum Retirement of New Mexico; and SRC of Texas, LLC doing business as Spectrum Retirement of Texas. This state-by-state organization suggests compliance with varying state regulations governing senior care facilities.

The S-K branded entities appear to represent a significant portion of the corporate family, with names like S-K Anson Opportunity II, LLC; S-K Anthem Opportunity I, LLC; and S-K Burr Ridge Residential, LLC. The numbering system in many entity names, such as "Opportunity I," "Opportunity II," and "Opportunity III," suggests multiple phases of development or investment in specific markets.

Several entities are named for specific communities or locations, providing insight into Spectrum's geographic footprint. These include facilities in Arizona locations like Chandler, Gilbert, Mesa, and Lone Mountain; Texas communities in Cedar Park, Lakeway, Round Rock, and Santa Fe; Ohio operations in Gahanna, Hilliard, Mason, and Pickerington; and Illinois facilities in Burr Ridge, Lombard, and Streamwood.

The inclusion of holding companies like Reavis St. Holdings, LLC and land-focused entities such as Spectrum Park Meadows Land, LLC indicates the company's involvement in real estate development and ownership beyond pure operations. This vertical integration is typical of larger senior living companies that develop, own, and operate their facilities.

Specialized entities like SRC Rigden Farms, LLC suggest involvement in specific development projects or unique facility types within the senior living sector. The presence of multiple entities in single markets, such as various Powell-related LLCs and multiple Chandler operators, may indicate expansion within successful markets or different phases of development.

The court proceedings involve this extensive corporate family, though the specific nature of the legal matter is not detailed in the available documents. The complexity of the entity structure, with more than 70 named parties, suggests either comprehensive litigation affecting the entire corporate family or proceedings that require inclusion of all related entities for complete resolution.

This case illustrates the increasingly complex corporate structures employed by large senior living operators. The multi-entity approach allows companies to segregate assets, comply with varying state regulations, and potentially limit liability exposure across their operations. However, it also demonstrates how modern senior care litigation can involve dozens of related entities when disputes arise.

The senior living industry has seen increased consolidation and corporatization in recent years, with large operators expanding across multiple states through acquisition and development. Spectrum Retirement Communities appears to represent this trend, with its extensive network of subsidiaries enabling operations across diverse markets while maintaining specialized legal and operational structures for different functions and locations.

For residents, families, and stakeholders in the senior living industry, cases involving such extensive corporate networks highlight the importance of understanding the legal and financial structures underlying senior care operations. The outcome of proceedings involving major operators like Spectrum can have implications for industry practices, regulatory oversight, and the broader senior living market.

Topics

Insurance CoverageSenior LivingCommercial LitigationPetition for CertiorariAppeals

Original Source: courtlistener

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