by Steve Monroe, Editor of The SeniorCare Investor
Senior Care Development Wins Auction
After about 10 hours of bidding for two CCRCs in Illinois that had been developed and managed by Erickson Retirement Communities, stalking horse bidder Senior Care Development, partnering with distressed bond investor Fundamental Advisors, came out on top.
The other bidder was Redwood Capital Investment, which won the auction for the main part of the Erickson portfolio late last year. The winning bid yesterday came in at $39.25 million of cash plus about $29.0 million of assumed debt, which compares to about $340 million of total debt that had been issued. The buyers plan to hire Life Care Services to manage the communities and Greenbrier Development to market and fill them. Occupancy at one community is close to 85% and close to 75% at the other, but the financial problems had kept many prospective residents away. That should change with the de-leveraging of both communities and renewed financial strength. Closing is expected to take place in November.