National Senior Housing Team Negotiates Sale of The Clare, One of the Nation’s Most Prestigious Senior Living Communities
Senior Housing Investment Sales Team led by David Kliewer and Allen McMurtry Represented a Joint Venture in the disposition of the iconic 53-Story High-Rise
January 2020
David Kliewer and Allen McMurtry negotiated the sale of The Clare, a luxury, 338-unit high-rise continuing care retirement community (CCRC) in the heart of Chicago’s affluent Gold Coast neighborhood.
The Tampa, FL-based Senior Housing team led by David Kliewer represented a joint venture between New York-based alternative asset manager Fundamental Advisors LP and Harrison, NY-based owner and developer Senior Care Development, LLC (SCD). Under the direction of the ownership team, occupancy increased from ±34% at the time of acquisition in 2012 to the current occupancy of ±99%.
Des Moines, IA-based senior living company LCS, which was a minority investor in the SCD acquiring entity in 2012, purchased the asset as the new majority owner with SCD retaining a minority investment moving forward. Life Care Services, the management arm of LCS that had previously managed the property under the sellers’ ownership, will remain as the manager.
The Clare is a high-end CCRC with luxury interiors, offering residents premier views of the Downtown Chicago cityscape and Lake Michigan, as well as walkable access to nearby downtown amenities, all within a full continuum of care. Located within the Gold Coast, the seventh most affluent urban area in America, The Clare is situated one block from The Magnificent Mile and just over a mile from Navy Pier.
At 55 East Pearson St., The Clare was developed in 2008, and is a ±700,000-square-foot, 53-story high-rise. The property’s unit mix includes 248 independent living apartments, 26 assisted living units, 14 memory care units and 50 skilled nursing beds. The Clare offers a selection of one-, two- and three-bedroom independent living units averaging ±1,200 square feet. It was ±99% occupied with a waiting list at the time of sale.
The Clare shares a portion of the development with Loyola University’s Water Tower Campus. Loyola and The Clare have a lease agreement for the parcel’s land/development rights on which the building was developed.
“The Clare is widely recognized as the premier Senior Living high-rise in the nation. The successful turnaround of this trophy asset represents a tremendous accomplishment for the senior living industry and, in particular, the entrance-fee CCRC operating model,” said Mr. McMurtry. “The team of Fundamental, SCD and LCS executed a multi-year strategic plan resulting in not only an exceptional financial outcome, but a thriving community for the residents and staff of The Clare.”
“The Clare is truly a one-of-a-kind senior living asset in one of the most affluent and highest barrier-to-entry locations in the country. With Life Care Services continuing to operate the community going forward, it is well-positioned for future success.”
David Kliewer, Co-Founder of Continuum Advisors