Fundamental Advisors Announces Sale of The Clare at Rush and Pearson to LCS
January 2, 2020
NEW YORK–Fundamental Advisors LP (“Fundamental”), a leading alternative asset manager focused on municipal, public purpose and community assets, today announced the sale of The Clare at Rush and Pearson (“The Clare”), the premier senior housing community in Chicago, to LCS, the nation’s second-largest operator of senior living communities. Terms of the transaction were not disclosed.
Fundamental, in partnership with seasoned senior housing experts at Senior Care Development (“SCD”), and LCS acquired The Clare in a bankruptcy court auction in 2012 and brought this once highly-distressed asset to profitability, raising occupancy from 34% to 98%. The partners worked collaboratively to successfully execute a multi-faceted plan to renovate the community, expand the health center and augment programs and services for residents. Life Care Services, the management arm of parent company LCS, was brought in to manage the community. With these enhancements, the continuum of care and lifestyle for residents was substantially broadened and The Clare was repositioned to become a leading senior housing 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.”
The Clare offers unparalleled amenities and services including personalized healthcare, three on-site restaurants, a state-of-the-art health and wellness center, art and computer rooms, a library and a business center. The community also provides residents with robust social activities including music, art, and theater, as well as lectures from The Clare’s partnerships with Loyola University, Northwestern University’s Osher Lifelong Learning Institute and the Center for Life and Learning at Fourth Presbyterian Church. With health and wellness as a top priority, the community has dedicated six floors to rehabilitation, respite care, skilled nursing, assisted living and memory care and maintains a 5-star quality rating awarded by the Centers for Medicare & Medicaid Services.
“We are thrilled to have worked with Fundamental and LCS on our third successful CCRC together over the past decade to revitalize The Clare, creating the vibrant community it is today,” said David Reis, CEO of SCD. “Together with the team of professionals at Fundamental and LCS, we have positioned The Clare for long-term sustainable success. The SCD team is pleased to have a continuing role in the community’s operations as well as a minority investment moving forward.”
“The Clare is a premier asset that is a natural fit with our existing portfolio, and reinvesting in the community aligns with our principle of keeping a long-term perspective,” said Joel Nelson, President and CEO of LCS. “We are looking forward to serving the residents for many years to come.”
Founded in 2007, Fundamental Advisors is focused on targeting control oriented investments in stressed and distressed assets or securities, financing the development or revitalization of public purpose or community assets, and acquiring undervalued securities in the secondary market. Fundamental invests through a range of vehicles that capitalize on the growing opportunity set in the municipal market.
Established in 1971, LCS is a leading provider of high-quality senior lifestyle products and services. The LCS Family of Companies focus on development, operations management, marketing and sales management, and strategic planning for Life Plan Communities, and rental independent living, assisted living, and memory care communities nationwide. The company also provides a full-service real estate private equity enterprise, insurance, national purchasing consulting services and in-home care. The companies of LCS serve thousands of seniors across the nation.
For over 30 years Senior Care Development has specialized in developing and investing in the full continuum of senior housing with specific expertise and focus on high barrier to entry life plan communities and skilled nursing facilities.