Ziegler has announced its role in arranging the sale of a distressed CCRC in Mount Morris, Illinois, about 100 miles west of Chicago. Founded in 1893, Pinecrest Community is a Christian, not-for-profit continuing care retirement community affiliated with the Church of the Brethren. It has grown over the years to include active adult cottage homes, independent living apartments, assisted living, skilled nursing and a memory care center. It also features a large theater, public gym and retail spaces for the surrounding Mt. Morris community. However, the Board ultimately decided to sell the CCRC due to its financial instability. Struggling with both staffing shortages, pandemic expenses and the state’s low Medicaid rates, it had been losing $150,000 or more each month during the last two years. So, Pinecrest reached out to Ziegler’s Senior Housing & Care Finance team to facilitate a sale.
Although the Church would have liked to pass ownership of the community off to another not-for-profit, there are not many not-for-profit organizations currently looking to buy or partner with a struggling campus. Often, those other not-for-profits are going through the same issues, too. But Chicago-based Allure Healthcare Services satisfied the Pinecrest Board by its skilled nursing programs and presence in northwestern Illinois. The seniors housing and skilled nursing operator operated nine other skilled nursing and senior living communities throughout the state, and took over operations at Pinecrest on December 2. Nick Glaisner of Ziegler handled the transaction.
The not-for-profit organization did not realize a profit from the sale and will be responsible for paying off bank bonds or debt with the proceeds, in addition to paying Allure for accrued vacation/sick time, deferred maintenance and meeting vendor obligations. And according to Pinecrest CEO Ferol Labash, any proceeds left after those obligations would be given to the Church of the Brethren.
