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Memory care facility in Citrus Heights faces lawsuit over loan default

The Courte at Citrus Heights memory care center is located at 6825 Sunrise Blvd.
The Courte at Citrus Heights memory care center is located at 6825 Sunrise Blvd. // SB Williams

By Sara Beth Williams–
A lawsuit has recently been filed against a memory care center in Citrus Heights.

Attorneys for Beyond Loan 5 LLC, which alleges a loan default, filed an amended motion on Wednesday, Feb. 5 in Sacramento County Superior Court against The Courte in Citrus Heights, asking the court to a appoint a receiver to manage the facility’s debt, with agreement from the borrower, according to the Sacramento Business Journal.

The suit states that a receivership would avoid formally foreclosing on the property, which could take several months, would “compel a quicker resolution” and would also ensure continued care of current residents at the memory care center.

The Courte at Citrus Heights is a memory care facility for patients diagnosed with dementia and Alzheimer’s and opened in 2016. The 48-bed facility is 27,768 square feet and sits on almost three acres.

According to the original suit filed on Jan. 22, Citrus Heights Memory Care LLC, based in Oregon, borrowed $8 million in May 2024 from Beyond Loan 5 LLC, the plaintiff in the suit. The loan was attached as a lien on the property.

Citrus Heights Memory Care has not paid much toward the cost of the $8 million loan, and has also defaulted on an original loan, along with associated closing costs, for a total unpaid balance of more than $9 million, the Journal reported the lawsuit claims.

A visit to the memory care center last week found a full parking lot with at least two vehicles waiting for a parking space to become available. A listing on Google indicates the memory care center still remains operational and is open 24 hours a day. A phone number on the listing is also operational. Management at The Courte at Citrus Heights said in a phone call Friday they do not handle media inquiries and directed requests for comment to Frontier Senior Living.

A website for the Citrus Heights Memory Care or The Courte at Citrus Heights no longer appears active, but instead redirects parties to Frontier Senior Living, which manages a number of senior care facilities. A location search on the senior living management company’s website does not show a location for The Courte at Citrus Heights.

Frontier Management, located in Dallas, Texas, does not list any contact information other than a physical address.