Change of Ownership for Seniors Residential Complex in Ottawa Following Court Proceedings

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A seniors residential complex in Ottawa's Citiplace neighbourhood has been sold through a court-ordered process after financial difficulties faced by the previous owner, Choo Communities. The new owner, Verve Senior Living, plans to invest significantly in the properties.

A two-building seniors residential complex located in Ottawa's Citiplace neighbourhood has recently transitioned ownership through a court-ordered sale, as documented in filings with the Ontario Superior Court and a related press release. The complex comprises the 125-suite Ravines Retirement Residence at 626 Prado Private and the adjacent 138-suite Ravines Senior Suites at 636 Prado Private, situated alongside Nepean Creek near the Rideau River in Ottawa. Both facilities are managed by a common team and feature interconnected above-ground and underground corridors, having been developed concurrently by Ontario-based developer Choo Communities under the Ashcroft Homes brand. This move follows the recent sale of the ReStays boutique hotel in Ottawa, which was also part of a receivership process, as previously reported by STOREYS.
The legal proceedings began after Ashcroft Homes sought creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on December 5, 2024, affecting several of its corporate affiliates and projects, including the entities holding the Ravines properties. The judge overseeing the case noted that despite the Ashcroft Homes Group's history of generating substantial revenues and holding significant net equity, liquidity challenges had arisen due to rising interest rates and declining occupancy rates. "This has left the applicants finding themselves in a position of insufficient liquidity to meet their current debt obligations," the judge remarked.
In an affidavit from owner David Choo, it was revealed that efforts to address these financial shortfalls with lenders began in late 2023, leading to the establishment of forbearance agreements and cross-guarantees intended to restore occupancy rates and allow for the finalization of construction, refinancing existing debts, and asset sales to alleviate financial burdens. As of August 19, 2024, the lender for Ravines Retirement Residence, Central 1 Credit Union, was owed $38,373,232.02, while ACM Advisors, a subsidiary of EQ Bank, held a loan for Ravines Senior Suites amounting to $45,234,932 as of October 2024. Additionally, a second-ranking mortgage had been issued by Institutional Mortgage Capital (IMC).
Following the initial creditor protection phase, several lenders opposed the continuation of the CCAA proceedings and initiated their own receivership actions against the properties. Consequently, both Ravines buildings were placed under receivership, overseen by separate receivers — BDO and KSV Restructuring, now operating as AlixPartners. The properties were subsequently listed for sale by Newmark, available as either separate entities or as a package due to their shared components.
The listing team, including BJ Bhal, David Kalinowsky, Mark Gallagher, Norm LeZotte, and Amani Jawhari, marketed the properties on an unpriced basis, characterizing them as an "Institutional-grade, continuum-of-care campus" that was well-positioned for short-term financing with a clear path to equity takeout upon stabilization, according to a sales brochure obtained by STOREYS. The Ravines Retirement Residence currently has an occupancy rate of 73%, generating an average monthly rent of $7,257, while the Ravines Senior Suites has a 63% occupancy rate with an average monthly rent of $5,554.
As of August 18, 2026, a report from AlixPartners indicated that 32 parties had signed confidentiality agreements, eight property tours were conducted, and two parties submitted letters of intent. The chosen bidder was expected to purchase both buildings and was granted 60 days for due diligence, but repeatedly requested extensions. Concerns arose for the Receiver regarding these delays, especially when it appeared that the Original Purchaser was engaging in discussions with Choo or his representatives that may have breached their NDA. Despite these issues, the Receiver allowed an extension until April 28; however, the purchaser ultimately decided against proceeding with the transaction. This led to a dispute over the deposit, which was resolved with $15,000 retained by the Receiver and the remainder returned.
With the initial sale falling through, Newmark revisited a shortlist of potential buyers to see if anyone would be interested in stepping into the Original Purchaser's position. They approached six parties, and while the Original Purchaser expressed interest in resubmitting an offer, the Receiver ultimately accepted a bid from Verve Senior Living, a brand under Diversicare Canada Management Services Co. The court approved this transaction on September 9, marking the properties as beneficially owned by Verve Nepean Limited Partnership through The Ravines SS Inc. and The Ravines PPP Inc. Verve announced their acquisition this week, stating that the complex commenced operations as Verve The Ravines on September 22, retaining existing staff, and plans to invest $20 million in the property over the next two years. Scott Quinney, President of Verve Senior Living, expressed enthusiasm about the acquisition, highlighting the community's strong reputation and potential. According to Receivers' reports as of July 31, 2026, Central 1 Credit Union was owed $42,206,830.40, while ACM had an outstanding amount of $29.5 million and IMC was owed $13.9 million. Notably, Central 1 is expected to face a shortfall, while ACM and IMC are anticipated to be repaid in full.

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