CCRCs Are Not Dead, and Happy New Year
Two recent CCRC sales prove the point that this market can thrive. You know one of my favorite refrains by now. CCRCs are not dead. And two recent transactions prove my point. At the end of December, David Reis and his Senior Care Development, together with their equity partner Fundamental Advisors, closed on the sale of The Clare in downtown Chicago. This 338 unit/bed CCRC opened during the Great Recession and was forced to sell for 20 cents on the dollar with occupancy at 34%. Today, occupancy is at 98%, average entrance fees are back to $740,000, and they just sold it to LCS for about $320,000 per unit/bed. Talk about a great return on investment. LCS had been a minority investor and... Read More »
The Clare Turnaround Complete
No one said it was going to be easy back in 2012 when an investor group took control of a large CCRC known as The Clare in downtown Chicago. Occupancy was just 34% when the community was sold out of bankruptcy, with its reputation tarnished in the local market during the high-profile proceedings. Senior Care Development (SCD), the stalking horse bidder, with Fundamental Advisors (FA) and LCS, teamed up to buy the community at auction for $53.5 million and put it on the right path to success and profitability. No small order. The stalking horse bid was a mere $29.5 million, compared with the $229 million that was spent to develop the CCRC. There were just two other bidders, and when the... Read More »
Cushman & Wakefield Sells CCRC Portfolio
It is amazing what patience, capital, expertise and desire can do to change things around for a few bankrupt entrance-fee CCRCs. We are referring to Sedgebrook in Lincolnshire, Illinois and Monarch Landing in Naperville, Illinois that fell into bankruptcy in 2010 and were sold in an auction process for a combined total of about $39.25 million. They had been built by the former Erickson Retirement Communities, which itself filed for bankruptcy protection after problems with too much debt and too many new units to fill during the Great Recession, although these two CCRCs were outside the corporate bankruptcy. Monarch Landing was supposed to be built with 1,498 IL units, 84 AL units and 132... Read More »
Private Evening in NYC
Members of the American Seniors Housing Association and subscribers to The SeniorCare Investor gathered in New York City on the night of the Rockefeller Center tree lighting in an intimate setting at The Penn Club to hear what Rick Atlas (Atria Senior Living), David Reis (Senior Care Development) and Scott Stewart (Capitol Senior Housing) had to say about investing in seniors housing today. While all three were very bullish on the future of the seniors housing business and long-term investment values, there were certainly differences of opinion as to where they see strength. For example, David Reis stated that not only is the CCRC model alive and well, but several of his CCRCs are... Read More »Schedule a demo
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