Allen McMurtry, Paul Carr and David Kliewer Negotiated the Sale of Two Senior Living Campuses Totaling 1,071 Units in the Chicago Metro Area
TAMPA, FL, August 14, 2018 – Cushman & Wakefield has negotiated the recapitalization of two Chicago-area senior living communities, Sedgebrook in Lincolnshire and Monarch Landing in Naperville, for a total purchase price in excess of $100 million.
Based in Cushman & Wakefield’s Tampa, Florida, office, Executive Director Allen McMurtry, Senior Director Paul Carr and Senior Director David Kliewer represented a partnership between Fundamental Advisors LP (Fundamental) and Senior Care Development LLC (SCD) in the transaction.
The Fundamental-SCD partnership purchased the properties in 2010 after prior ownership found themselves in need of restructuring both communities. After 2010, the buyers implemented a series of initiatives including adjusting pricing to improve competitive position in their respective markets, investing significantly in capital improvement initiatives to enhance resident satisfaction, completing the construction of a new skilled and assisted living center at Monarch Landing (both 5-star rated from CMS), selling excess land at each community, and engaging Life Care Services as day to day manager of the communities.
“This was a highly successful strategic turnaround plan executed by a partnership of three of the industry’s most-respected players in the Entrance Fee CCRC space, and resulted in a tremendous outcome for the residents, staff and investor group,” said McMurtry.
SCD, led by CEO David Reis, has been developing the full spectrum of senior living facilities, with an emphasis on CCRCs, since 1988. McMurtry’s team also brokered the sale of Sedgebrook and Monarch Landing to the Fundamental and SCD team. Since the time of the acquisition, the ownership group has invested over $20 million in capital improvements between both communities, plus approximately $34 million for the construction of a new 118-unit Health Center at Monarch Landing in 2014.
In the most recent transaction, Cushman & Wakefield ran a competitive marketing process, which ultimately identified a group consisting of global investment firm Arcapita in a new joint venture with SCD and LCS to acquire the properties. LCS will continue to operate both communities.
“We are incredibly fortunate to have found a partner in Arcapita who has a long-term investment time horizon and shares our belief on what being good stewards of these communities means,” said David Reis CEO of SCD.
Sedgebrook and Monarch Landing were originally constructed in phases beginning in 2005. Overall occupancy for Independent Living at both communities is currently approximately 93 percent.
Sedgebrook is located at 800 Audubon Way in Lincolnshire, and includes 467 Independent Living apartments, and a Health Center with 38 Assisted Living/Memory Care units and 84 Skilled Nursing units. Monarch Landing is located at 2255 Monarch Drive in Naperville, and includes 364 Independent Living apartments, a Health Center with 28 Assisted Living/Memory Care units and 90 Skilled Nursing units.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, advisory and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
Communications Specialist, Florida