Senior Care Development specializes in the construction of continuing care retirement communities and assisted living facilities for its own portfolio. “Bond holders took a big hit on this,” says Reis, figuring they got back about 20 cents on the dollar. The properties were saddled with about $330 million in construction debt, which was wiped clean by the bankruptcy. “This is a once-in-a-lifetime opportunity.” “We got a great deal on two great communities,” says David Reis, CEO at Senior Care Development based in Harrison, N.Y. The communities sought Chapter 11 protection in U.S. Senior Care Development paid $40 million in cash for two Chicago-area projects, Monarch Landing in west suburban Naperville, and Sedgebrook in north suburban Lincolnshire. Two Erickson properties that were not part of the Redwood deal have now been sold. Erickson, which listed assets of $1 billion in the bankruptcy filing, operated a chain of 19 communities. Redwood Capital Investments of Hanover, Md., purchased most of Erickson’s assets for $365 million. The company filed for Chapter 11 bankruptcy protection in October 2009. The company built a number of large-scale continuing care projects when capital was readily available and the housing market was strong.īut when the economy crashed, so did Erickson. Take, for example, Erickson Retirement Communities of Catonsville, Md. The success of a business model often depends on current economic conditions.
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