New owners for bankrupt Lincolnshire, Naperville retirement communities

A New York company has completed a deal to take over Lincolnshire and Naperville retirement communities that fell into bankruptcy.

Senior Care Development, Inc. paid $38 million cash for Sedgebrook in Lincolnshire and Naperville's Monarch Landing in a deal that closed Friday, said David Reis, the company's chief executive officer.

“Both communities will be keeping their name and we would hope to grow each community as sales continue,” he added.

The complexes offer independent, assisted-living and skilled-nursing units. Residents paid six-figure entry deposits on the homes and are charged monthly fees.

Original plans called for about 1,900 units at Sedgebrook and 1,800 at Monarch Landing, but reports are that only about 525 residents are living in the Lincolnshire community and just 350 in Naperville.

Erickson Retirement Communities created nonprofit, tax-exempt companies that owned each. Both operations declared bankruptcy in July, less than a year after Erickson's for-profit unit did the same.

Sedgebrook listed a $27.7 million deficit for net assets or fund balances on the most recently available Internal Revenue Service filing for the fiscal year ending Dec. 31, 2008. Monarch Landing reported a $25 million deficit to the IRS at the end of 2008.

Erickson Retirement spokesman Dan Dunne said Wednesday the company kept residents informed of the financial developments.

“(Senior Care has a) track record of protecting residents' rights,” Dunne added.

Lincolnshire Mayor Brett Blomberg said Sedgebrook's bankruptcy didn't affect village finances and was pleased to learn Senior Care bought the retirement communities.