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A little more than a year after its inception, Forum Lifecare Inc., a subsidiary of Forum Group Inc., the Indianapolis-based luxury retirement center developer, has finally gotten off the ground with its first acquisition.
Last week, Forum Lifecare bought the Brookside Retirement Community, a 216-unit retirement center in Jefferson County, Ky., on the outskirts of Louisville, for $11.8 million. The property also includes 60 personal-care beds.
Bruce Karr, senior vice president and general counsel for Forum, says the negotiations for the property began in the first quarter of this year, with a definitive agreement signed in April. The actual closing on the project was delayed until Nov. 1, however, because of a default on a bond issue and a mortgage foreclosure upon the original owners of the retirement community, Housing Now-Brookside Inc.
The project was originally funded through a bond issue by First Kentucky Trust Co., but the bonds were structured in such a way that Housing had difficulty keeping the project afloat. Karr says Forum did not assume any of the liabilities connected with...