An Arizona-based company is seeking to foreclose on a $17.5 million rehabilitation and therapy facility in northwest Wichita that has yet to open.
The 70,036-square-foot building at 7057 W. Village Circle known as the Healthcare Resort of Wichita continues to sit vacant. It’s part of the Estancia Plaza development just southeast of K-96 and Ridge Road.
Avana Capital last week filed suit in Sedgwick County District Court seeking to foreclose on Indiana-based Mainstreet and its CEO and founder Zeke Turner, which originally developed and planned to open the 94-bed transitional care and assisted-living facility by the end of 2016.
Avana says in the suit that Mainstreet failed to comply with terms of its $17.1 million loan agreement that required the company to enter into a management agreement with Missouri-based Americare Systems. The suit also says Mainstreet told Avana on March 2 “that it would no longer pay monthly interest payments as required.”
The outstanding balance of the loan was $14,573,688.98 as of April 24, the suit says.
Turner said Tuesday a transaction "that hasn't gone through yet" prompted Avana's foreclosure petition. Once it does, "it will resolve the issue at hand," he said. He would not give specifics about what exactly the transaction is, citing confidentiality.
"As soon as we have the pending transaction far enough along to talk about it, I will," Turner said.
He said he's not worried about the foreclosure proceedings. "I'm certain we'll get it resolved," he said.
Mainstreet took out the loan from Avana in November to buy back the rehab and therapy facility from another Indiana-based company. After developing it, Mainstreet sold the facility to Invesque in lieu of opening it as originally planned in 2016.
But Invesque never opened it, either. The facility has 70 skilled nursing and 24 assisted-living beds.
Turner told The Eagle in January that he was working to find an operator for the property and hoped to have it open by summer.
That is still the plan, he said Tuesday. "We've been working really hard on that."
Mainstreet has developed more than 50 other assisted-living and senior care facilities across the U.S.