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Sedgebrook and Monarch Landing
A winning bid at auction lifts two retirement communities from the auction block to resurgence

In September 2010, the ownership team of Senior Care Development LLC and its institutional capital partner added two suburban Chicago landmarks to its portfolio of exceptional senior living communities. Both Monarch Landing and Sedgebrook were originally developed by Erickson Retirement, a privately held retirement community developer with properties nationwide. Erickson had previously been sold to a new buyer, leaving its two Chicago area communities under a heavy load of over $300MM in debt. While the communities continued to provide quality care to residents, something had to be done to lower the amount of their debt. By June 2010, the respective bondholders of each community announced their intent to call the debt, forcing Sedgebrook and Monarch Landing to turn to the Courts for help. An auction of the property was scheduled by the Court for September, 2010.

Seizing the opportunity, SCD immediately negotiated for and gained court approval to be the "stalking horse" bidder. The weeks prior to the auction were dedicated to extensive due diligence, meeting with residents and staff of both communities, producing in-depth market analyses, and laying the groundwork to refocus and revitalize both communities. We even developed a rebranding and marketing communications plan in anticipation of acquiring the two communities and reigniting sales momentum.

At the 14-hour long auction, SCD emerged as the successful bidder…purchasing the two communities at a combined gavel price of $68+ million via an all cash transaction. Since the purchase occurred without any debt financing whatsoever, both Monarch Landing and Sedgebrook are now among only a handful of communities in the country that can boast zero debt which ensures financial stability and an equally bright future for both communities.

Building on the positive relationship between Erickson and the residents of each community, SCD pledged to honor all existing resident contracts and intended to retain the staff that had been instrumental in maintaining the stability and personalized service that always characterized both communities.

Monarch Landing, located on 80 scenic acres in Naperville, IL is comprised of 365 apartment homes with access to physician care on-site and home health care services available in a resident's own apartment. Sedgebrook has 467 apartment homes set amid a landscaped, 92-acre property in Lincolnshire, IL, with assisted living and skilled nursing services provided on campus.

Both Sedgebrook and Monarch Landing are managed by Life Care Services, LLC, the nation's leading manager of high quality senior living communities. Founded in 1971, LCS now serves 23,000 residents in more than 100 communities in 27 states. Visit LCSnet.com

Visit Sedgebrook on the web: www.welcometosedgebrook.com.

Visit Monarch Landing on the web: www.welcometomonarchlanding.com.

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