Retirement Communities Change Hands
- Dec 01, 2010
December 1, 2010
By Allison Landa, News Editor
Two suburban Chicago continuing care retirement communities that fell into bankruptcy now have a new owner. Sedgebrook and Monarch Landing, located respectively in Lincolnshire, Ill., and Naperville, Ill., have been sold for approximately $39 million to an affiliate of Senior Care Development L.L.C. and its capital partner Fundamental Advisors L.P.
Previously owned by Erickson Retirement Communities, the properties went bankrupt after Erickson defaulted on more than $300 million in construction financing. Erickson itself filed for bankruptcy in October 2009, stating that the economic downturn had affected its business more than expected. After a bankruptcy auction, Redwood Capital acquired Erickson in December 2009, but Sedgebrook and Monarch Landing were not part of that transaction.
Sedgebrook was built between 2005 and 2009 and comprises 601 units totaling 849,265 square feet. It sits on a 91-acre parcel. Monarch Landing was built between 2006 and 2007 and comprises 362 units totaling 612,484 square feet. It sits on a 78-acre parcel.
Founded in 1988, Senior Care Development specializes in a broad spectrum of senior living facilities with an emphasis on continuing care retirement communities.