Bond help will boost Sedgebrook

The pace of development at a retirement community in Lincolnshire will pick up with an infusion of $137 million in state-issued bonds.

Bonds issued by the Illinois Finance Authority also will allow the nonprofit partner to acquire the land and buildings from Erickson Retirement Communities, the developer of Sedgebrook, on Milwaukee Avenue in Lincolnshire.

"It's giving us the opportunity to move forward with some more units," said Ian Brown, executive director of Sedgebrook.

As it has in other instances, the Baltimore-based Erickson will sell off its holdings to a nonprofit partner, although it may continue to manage the property.

"The developer sees this as an opportunity to provide affordable housing to seniors down the road," Brown said.

Erickson opened its first Illinois development in Lincolnshire two years ago with plans to evolve as a self-contained community, including doctors on staff, for seniors over 62. Most of the homes are for independent living, although assisted living and specialized care are in the mix.

So far, about 320 people live at Sedgebrook. A fifth building is scheduled to open in October. Ground breaking also is planned this fall for Renaissance Gardens, with 96 assisted living and 132 skilled nursing beds.

Sedgebrook ultimately is scheduled to include 1,540 independent living units in 14 buildings as well as 128 assisted living and 236 skilled nursing units.

The tax-exempt finance authority bonds will support the construction, which was touted last week by Gov. Rod Blagojevich as creating quality care for seniors, along with 900 construction jobs and 1,000 permanent positions.

The finance authority, established in 2004, is a self-financed entity that issues bonds, makes loans and invests in business, not-for-profit organizations, agriculture and local governments, according to information provided by Blagojevich's office.

In this case, institutions and investors buy the bonds, which are sold in blocks of varying maturity times up to 35 years. The "blended" interest rate paid to investors by Erickson for all offerings is 5.96 percent.

Brown said the senior market is growing quickly and sales at Sedgebrook are going well.

According to estimates, there are more than 410,000 people 65 and over living within 25 miles of Sedgebrook.

Most Sedgebrook residents come from within 10 miles. "People are actually moving to be closer to their children," he said.

The company markets to middle-income people. Refundable entry deposits range from $175,000 to $550,000 with monthly fees ranges from $1,600 to $2,300.

When proposed, Sedgebrook was presented as the largest continuing care retirement community in Illinois.

"We built a large-scale retirement community. The others are very small," Brown said. "We have a different economy of scale."

Sedgebrook was not met with open arms by everyone. Some Lincolnshire residents contended the eventual population of more than 2,000 new residents -- increasing the village population by about a third -- would change the demographic balance. The new residents would not have the same inclination to support school and park issues, they argued.

"Sedgebrook has been well received by the community," said Mayor Brett Blomberg. "It fits in very well."