Senior Living Investment Brokerage recently announced the sales of the Lake Shore HealthCare and Rehabilitation Centre in Chicago, Illinois and the Claremont in Eau Claire, Wisconsin for $22,250,000 and %7,625,000 respectively in December 2009. The Chicago facility, built in 1972, has approximately 72,000 square feet situated on approximately 1.15 acres and has 313 beds. The building’s highly desirable location, physical plant and opportunity for financial improvement enabled SLIB to procure 10 offers and the complete the transaction in 82 days from listing engagement to closing. The new owner, located on the East Coast, plans to expand the Medicaid census and reduce labor costs.
“The sale of Lake Shore represents what many owners are currently contemplating. The owner made the decision to sell the facility in 2009 to avoid any potential retroactive increase of capital gains. While there is uncertainty with respect to capital gain rates in 2010, many fear that an increase is inevitable moving forward. If you are considering selling, now could be an ideal time with little inventory available and capital gains likely to increase in the near future.” – Ryan Saul and Michael Brundage of Senior Living Investment Brokerage, Inc.
The December transaction in Wisconsin represents the second time SLIB has sold the facility, the first being in June 2005 while the Clairemont was in bankruptcy. The Clairemont is a 161 bed long-term care facility located in the Eau Claire, WI. The approximately 69,091 sq. ft. facility on 4.42 acres was built in 1964 and has undergone various renovations since that time. The facility’s owner, located in Indiana, chose to divest of the property to free up capital and determined that Wisconsin was outside of their core market. The Eau Claire buyer, a regional organization with properties in Wisconsin and throughout the Midwest, utilized HUD Lean financing which was arranged for the Buyer by Red Capital. Ryan Saul and Jeff Binder of Senior Living Investment Brokerage, Inc. handled the Wisconsin transaction.