2 Chicago-Area Senior Housing Assets Land $100M Recapitalization

The properties, situated in Naperville and Lincolnshire, total 1,071 units and include independent living, assisted living and skilled nursing components.
Monarch Landing

Cushman & Wakefield has brokered the recapitalization of two retirement properties in Naperville, Ill. and Lincolnshire, Ill., totaling more than $100 million. Arcapita, in a joint partnership with Senior Care Development LLC (SCD) and Life Care Services (LCS), purchased Sedgebrook and Monarch Landing, with LCS continuing to operate both communities.

Fundamental Advisors LP and SCD acquired the assets in 2010 and started to implement a series of restructuring initiatives to reshape the two properties. Actions included adjusting pricing for a more competitive position in the market, capital improvements, selling excess land and appointing LCS as manager of both assets. In addition, Monarch Landing received a new skilled nursing and assisted living center.

Sedgebrook

The senior communities were constructed in phases, starting from 2005. The occupancy on both sites is roughly 93 percent. Monarch Landing is situated 2255 Monarch Drive in Naperville, roughly 32 miles west of downtown Chicago. The property features 364 independent living, 28 assisted living /memory care and 90 skilled nursing units. Sedgebrook is located at 800 Audubon Way in Lincolnshire and includes 467 independent living, 38 assisted living/memory care and 84 skilled nursing units.

Cushman & Wakefield’s Executive Director Allen McMurtry, along with Senior Directors Paul Carr and David Kliewer, represented the seller. In July, the brokerage company also worked on behalf of the seller in a $382 million senior housing portfolio sale. MBK Senior Living purchased three properties located in California, Washington and Arizona, totaling 1,200 units.

Images courtesy of Cushman & Wakefield