Update: Lifespace Acquires Fairview Village Retirement Community

Lifespace Communities, a not-for-profit senior living provider and operator of Beacon Hill in Lombard, is set to complete its acquisition of the Fairview Village retirement community today. 

Under terms of the acquisition, which were not released, the Downers Grove institution is being rebranded as Oak Trace.

“It was determined the new name, Oak Trace, was an important step in establishing and identifying the community with new ownership and all that Lifespace brings to the community and its residents,” said Scott Harrison, Lifespace president & CEO.  “We understand and recognize this community has a rich history in the area and the new name was created to honor that.”

Harrison said the new name will help the community recognize the changes in the facility, while still building upon the foundation of the previous organization.

The oak in Oak Trace symbolizes the strenght of the mighty tree and he word Trace gives recognition to the pathway or trail worn by the many who’ve been part of the community over the years, Lifespace officials said.

Fairview Village and several other not-for-profit corporations associated with Downers Grove-based VibrantLiving Communities & Services Feb. 4 in the U.S. Bankruptcy Court for the Northern District of Illinois.  

According to the bankruptcy petition, Fairview Ministries owed at least $59.8 million and listed assets of $10 million to $50 million. Lifespace worked with the courts in making a bid for the community, Harrison said. “Our organization was the only one to present an offer.” 

Lifespace believes Fairview will be a good fit with its other 11 senior living communities in seven states—all of which offer older adults independent and assisted living, as well as skilled nursing care and a variety of amenities, Harrison said. 

When it announced the acquisition on June 30, Lifespace said it intends to completely renovate Fairview's Health Center, including upgrades to its mechanical and electrical systems. 

The company also will take “a close look” at the facility’s current offerings, although “residents will not see any of the services or amenities discontinued,” Harrison said. “To the contrary, Lifespace has many programming initiatives that may be implemented to enhance the lifestyle.” 

Lifespace also will honor existing resident contracts, Harrison said. “All of our communities have entrance-fee contracts and are life care communities.”

Entrance fees at Fairview Village ranged from about $141,000 to $385,000, depending on the size of the residential unit. Monthly fees, which cover operational costs and various services, range from about $1,050 to $2,600 per Downers Grove resident. Residents also were required to select a “life care plan” as part of the residency agreement.

Fairview Village residents and staff were made aware of the acquisition during meetings with the Lifespace leadership team.

“We have received overwhelming support and we are all looking forward to working together to continue a great life style for the residents and a wonderful working environment for the staff,” Harrison said. The company will maintain the current staff, he said. 

The acquisition marks the close of a roller-coaster period in the Fairview Village’s long history, which dates back nearly 40 years in Downers Grove. Shortly after it announced plans to build 197 apartments, a new nursing home and a fitness center on its existing 40-acre campus and purchased land on the west side of Fairview in an ill-fated plan to build another 32 senior apartments, the housing market collapsed.

The organization was devastated by declining real estate values and investment losses that “made it difficult, if not impossible, for seniors to move into retirement housing facilities such as Fairview Village, as many older adults rely on the proceeds from the sale of their home to fund the upfront entrance fee required by most (continuing care retirement communities)," according to the bankruptcy petition.

Lifespace, meanwhile, “has always operated on the philosophy of slow and steady growth,” Harrison said. “We are very fiscally prudent in our operations."

While "the housing market has been a factor for older adults who count on their equity to help in financing their retirement plans,” older adults who have lived in their homes for decades continue to see an increase in their initial investment, he said. 

“The challenge is getting people to understand that it may make more economical sense for them to sell their home and move to a senior living community and not have to deal with the constant upkeep and maintenance of homeownership.”