SCHAUMBURG, Ill. — Continuum Advisors has arranged the sale of Friendship Village of Schaumburg, the largest senior living campus in Illinois.
Spanning over 60 acres in the affluent Chicago suburb of Schaumburg, approximately 30 miles northwest of downtown Chicago, Friendship Village offers 818 units/beds across a full continuum of care. The property was sold through a court-directed bankruptcy process, with a cash purchase price of approximately $35.6 million, plus other cash contributions including to former residents.
The community offers 512 independent living apartments, 28 garden homes, 85 assisted living units, 24 memory care units and 169 skilled nursing beds. Friendship Village was built in phases starting in the late 1970s, with the most recent addition in 2007.
In 2017, Friendship Village refinanced its debt obligations and funded campus renovations through a bond issuance. Beginning in January 2021, the nonprofit borrower defaulted on its bond payments, largely attributed to the effects of COVID-19.
The team at Continuum Advisors, led by Dave Kliewer and Jay Jordan, initiated a marketing process that highlighted the ability for a buyer to restore the financial stability of Friendship Village and initiate a variety of repositioning opportunities.
Encore Healthcare Services is planning to make significant capital investments into the campus in addition to transitioning Friendship Village from a majority entrance fee community to a rental community. Existing residents with entrance fee contracts will be refunded part or all of their fees in accordance with a length-of-stay schedule, and Encore has committed to provide $750,000 per year in benevolence care, among other benefits to legacy residents.
Polsinelli acted as counsel for the seller.