Chicago Senior Care Acquires Clare at Water Tower in Bankruptcy Auction
- Apr 18, 2012
Chicago Senior Care LLC has acquired the luxury senior-housing high-rise Clare at Water Tower after winning an auction in the U.S. Bankruptcy Court in Chicago, Chicagorealestatedaily.com reports.
The partnership between Harrison, N.Y.-based Senior Care Development LLC, New York-based Fundamental Advisors LP and Des Moines, Iowa-based Life Care Companies LLC bid $53.5 million in cash for most of the development’s assets. The venture also agreed to assume liabilities that include around $57 million in resident deposits.
The 53-story tower, located on Loyola University’s Water Tower Campus, offers access to various amenities such as multiple dining venues, a business center, a performance center, a day spa, an entertainment center and a fitness and aquatic center.
After multiple rounds of bidding, the Senior Care group outbid local real estate developers Michael Reschke, chairman and CEO of Prime Group Inc., and David Crawford, principal at D2 Realty Services Inc., by $1 million, according to Mr. Reschke.
The Clare at Water Tower was developed by Homewood-based Franciscan Sisters of Chicago, and the $272 million project was finalized in 2008. In September 2011, the Clare defaulted on its $229 million mortgage and in November 2011 filed for Chapter 11 bankruptcy protection. According to court documents, only 83 units—roughly 34 percent of the total units available—were occupied at the end of 2011.
David Reis said the company plans to slash unit prices by over 20 percent and aggressively market the care services to private-pay patients.
Senior Care Development, financial partner Fundamental Advisors LP and management company Life Care Companies LLC have already collaborated in taking over two other distressed retirement communities in the region: Monarch Landing, located in Naperville, and Sedgebrook in Lincolnshire.
Photo Courtesy of: www.theclareatwatertower.com