ASBURY, Iowa – A Dubuque County judge has expressed support for the proposed sale of two senior living facilities previously operated by a Dubuque nonprofit.
District Judge Thomas Bitter issued his ruling Monday following a hearing in Dubuque County District Court. The move clears the way for the sale of Luther Manor Properties, located at 3131 Hillcrest Road in Dubuque and 5300 Grand Meadow Drive in Asbury.
The facilities were placed into receivership in August 2023 after more than $15.7 million in loans went unpaid and have since been managed by an outside agency while the properties are offered for sale.
Two suitable buyers have now been found – one for the Hillcrest property and another for the Grand Meadows site. The proposed purchase price for the two properties totals $29.8 million, with both offers contingent on court approval.
“There are still many more steps to be completed in terms of due diligence and closing, but this (hearing) has cleared a major hurdle for us,” said attorney Stephen Alt, who represented Luther Manor during the proceedings.
Tutera Senior Living and Health Care submitted a $21.3 million bid for the Asbury campus, which includes the nursing and assisted living facility at 5300 Grand Meadow Drive and 48 adjacent townhomes for older adults.
Of this, approximately $13.8 million would be used to assume all obligations related to the current occupancy agreements and fees for the townhouses.
The Hillcrest campus received an $8.5 million bid from newly formed 3131 Hillcrest Propco LLC for the facility, which includes 103 nursing beds and 32 assisted living units.
Bitter on Monday expressed his intention to approve the application for the sale, which would pay off most, if not all, of Luther Manor’s debt. The sale of the properties now depends on the completion of due diligence and other closing procedures.
If the purchases move forward as planned, the sites would be divided into Dubuque and Asbury. According to court documents, both potential buyers have expressed their intention to maintain current operations at the properties after the sale.
For Luther Manor residents Rosann Dryer and Ron Hunt, the hearing marked a turning point in “a year of uncertainty.” The two have lived on the Asbury campus for six years and have followed news surrounding the bankruptcy proceedings with concern.
Residents attended Monday’s hearing to hear the outcome firsthand. They said they had already received some information from the potential owner of the Asbury campus – including that their current lease would remain in place under the new ownership.
“After so much uncertainty, this gives us reason to be optimistic,” said Hunt. “Hopefully things will get better now.”
