Cushman & Wakefield Negotiates $100M Recapitalization of Two Chicago-Area CCRCs

LINCOLNSHIRE and NAPERVILLE, Ill. — Cushman & Wakefield has arranged a recapitalization of two continuing care retirement communities (CCRCs) totaling 1,071 units in the Chicago suburbs. 

The communities are Sedgebrook in Lincolnshire and Monarch Landing in Naperville. Although the exact amount of the recapitalization was not disclosed, it was reported at over $100 million.

Based in Cushman & Wakefield’s Tampa, Fla. office, Allen McMurtry, Paul Carr and David Kliewer represented a partnership between Fundamental Advisors LP and Senior Care Development LLC in the transaction.

The borrower purchased the properties in 2010. Since then, the partnership adjusted pricing, performed $20 million in capital improvements, sold unused land at the properties, installed Life Care Services as the operator, and built a $34 million, 118-unit expansion at Monarch Landing.

As part of the recapitalization, a group led by global investment firm Arcapita has joined the ownership team. Hunt Real Estate Capital represented the buyer in that transaction, and arranged the acquisition debt.

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.

BMO Harris Bank’s Healthcare Real Estate Finance group provided the $51 million for the Sedgebrook transaction. The lender was not disclosed for Monarch Landing.