BMO Harris Bank’s Healthcare Real Estate Finance group recently closed a $59.4 million deal that enabled Pearson Street Partners LLC to finance the acquisition of The Clare in Chicago.
Pearson is a joint venture between LCS, parent company of Life Care Services, the nation’s second-largest senior living operator; and Senior Care Development, LLC.
The Clare is an entrance-fee model continuing care retirement center with 50 skilled nursing beds, 14 memory care units, 26 assisted living units and 245 independent living units.
Fundamental Advisors LP had partnered with Senior Care Development and LCS in 2012 to acquire The Clare in bankruptcy court. Over the last nine years, Fundamental reported occupancy rose from 34% to 98% following renovations, the expansion of the health center and improved resident programming. During that time, Life Care Services managed the community.
“Our team is proud to have transformed The Clare into a thriving community, and we are confident that the facility will continue to be in great hands under the ownership of LCS,” said Laurence Gottlieb, chairman and CEO of Fundamental. “The Clare underscores Fundamental’s focus on community and sustainability as well as our differentiated approach to investing in purpose-built assets. We are pleased not only to have generated strong returns for our investors but to have created a flourishing senior living community in the heart of Chicago.”
David Reis, CEO of SCD, said the partnership had positioned The Clare for “long-term success.”
“The SCD team is pleased to have a continuing role in the community’s operations as well as a minority investment moving forward,” he said.
