One Lender One Senior Housing Company file chapter 11

Capmark and Erickson Retirement Communities LLC file for Chapter 11 bankruptcy.

According to reports, Capmark is filing for bankruptcy protection. After filing a $1.6-billion Q2 loss, the commercial real estate lender is seeking for protection under Chapter 11. The lender has $21 billion of debt and $20.1 billion in assets.

Capmark’s subsidiaries filing for Chapter 11 protection include Capmark Finance Inc.; Capmark Capital Inc.; Capmark Equity Investments, Inc.; Mortgage Investments, LLC; Net Lease Acquisition LLC; SJM Cap, LLC; Capmark Affordable Equity Holdings Inc.; Capmark REO Holding LLC; Summit Crest Ventures, LLC; Capmark Affordable Equity Inc. and 33 other Low Income Housing Tax Credit entities.

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John C. Erickson, the pioneer of continuing-care retirement communities, has placed his 26-year-old Erickson Retirement Communities LLC into Chapter 11 protection under the U.S. Bankruptcy Code.

The reason:  Dwindling occupancy at Erickson's 19 managed communities due to deflated home values of senior citizens. The Seniors normally sell their homes before relocating to a nursing care campus.

Waiting in the wings with an undisclosed offer for the Erickson assets is James C. Davis, chairman, Redwood Capital Investments LLC of Hanover, MD.  The Bankruptcy Court in Dallas is reviewing Davis's offer.