Continuum Advisors Closes Large-Scale Senior Living Sale in Chicago

January 2024

Continuum Advisors has arranged the sale of Friendship Village of Schaumburg, the largest Senior Living campus in Illinois. Spanning over 60 acres in the affluent Chicago suburb of Schaumburg approximately 30 miles northwest of Downtown Chicago, Friendship Village offers 818 units/beds across a full continuum of care. The property was sold through a court-directed bankruptcy process, with cash purchase price of approximately $35.6 million, plus other cash contributions including to former residents.

The community offers 512 independent living apartments, 28 garden homes, 85 assisted living units, 24 memory care units, and 169 skilled nursing beds. Friendship Village was built in phases starting in the late 1970s, with the most recent addition in 2007. In 2017, Friendship Village refinanced its debt obligations and funded campus renovations through a bond issuance. Beginning in January 2021, the not-for-profit borrower defaulted on its bond payments, largely attributed to the effects of COVID-19.

The team at Continuum Advisors led by Dave Kliewer and Jay Jordan initiated a marketing process which highlighted the ability for a buyer to restore the financial stability of Friendship Village and initiate a variety of repositioning opportunities. Continuum Advisors led a sale process through the bankruptcy court, which resulted in three parties submitting binding contracts for the Stalking Horse position. After the selection of the Stalking Horse and an overbid marketing process, a multi-round auction was completed in late October 2023, with Encore Healthcare Services emerging as the winning bidder at auction. From the time of launching the offering materials to closing, the transaction was completed in approximately 6.5 months.

Encore Healthcare Services is planning to make significant capital investments into the campus in addition to transitioning Friendship Village from a majority Entrance Fee/Life Plan community to a Rental community. Existing residents with Entrance Fee contracts will be refunded part or all of their Entrance Fees in accordance with a length-of-stay schedule, and Encore has committed to provide $750,000 per year in benevolence care, among other benefits to legacy residents.

“Friendship Village is a high-quality campus which was in need of financial stability, a fresh approach to the business plan, and a capital infusion. Encore is an ideal fit for Friendship Village given their operational expertise and unique ability to execute a transaction of this size and complexity.”

David Kliewer, Co-Founder of Continuum Advisors

Polsinelli acted as counsel for the seller.