Silverado to Acquire Three Communities from Troubled CRL Operator

Silverado Senior Living announced on Friday that it will acquire and assume management of three memory care communities currently managed by CRL Senior Living.

The news follows an announcement made earlier last week that Chicago-based Senior Lifestyle Corp. would be assuming management of 11 other CRL communities.

The announcement followed reporting by the Northwestern on CRL’s regulatory struggles and the possibility that several communities were about to have their operating licenses revoked, according to Wisconsin officials.

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“As plans progress, we’ll continue to work diligently with CRL to ensure there is no lapse in care or coverage during the transition,” said Silverado President, CEO and Chairman Loren Shook in a statement. “Ultimately, our goal is to always ensure the best possible care and enrich the lives of our residents, their families and our associates.”

The three properties Silverado is acquiring are Arbor Ridge Manor and North Grove Manor in Illinois, and Northfield Manor in Wisconsin. They will be added to the Irvine, Calif.-headquartered company’s existing 25-property memory care portfolio.

Both Senior Lifestyle Corp. and Silverado plan to take over operations of the combined 13 communities this summer, reportedly in July. No acquisition prices have been disclosed, and current occupancy has not been released.

CRL Senior Living, also based in Chicago, currently operates 15 senior living communities in Illinois and Wisconsin, according to its website. With 11 of those to be managed by Senior Lifestyle and three being acquired by Silverado, just two will be left in CRL’s portfolio.

The embattled operator experienced substantial expansion between 2005 and 2010 with the backing of Toledo, Ohio-based Health Care REIT (NYSE:HCN). By the end of 2005, CRL’s portfolio consisted of five communities in Wisconsin it had either developed or acquired in the previous few years.

Between 2005 and 2008, CRL developed four new communities and expanded two existing ones with HCN , according to its website. The CRL portfolio grew to 10 communities by the end of 2008 with another one under development.

Then in 2009, at the request of HCN, CRL assumed management of five underperforming communities with a total of 414 beds, according to the company website.

Health Care REIT declined to comment on whether it owns any of the communities that are changing ownership or management.

Written by Alyssa Gerace

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