River Glen of St. Charles and Carroll Tower Sell for $74M

Chicago’s senior living hot streak continued with two transactions totaling $74 million completed in the same suburb last week.

In both transactions, local sellers cashed in on sales to out-of-state buyers taking interest in the region, public records show.

Lincolnwood-based 3 Diamond Development Group offloaded Carroll Tower, a 108-unit affordable senior living facility, that was facing foreclosure.

Green Bay, Wisconsin-based lender Associated Bank filed a foreclosure lawsuit against 3 Diamond last year, claiming the borrower had failed to pay off a $20 million mortgage against the property when it matured in 2024.

Supported by the $20 million mortgage, 3 Diamond bought the property for $23.5 million in 2022.

The region’s strong senior living market may have helped 3 Diamond settle its debt to Associated Bank.

Irvine, California-based buyer Preservation Equity Fund Advisors last week bought the property for $23.5 million, about the same amount 3 Diamond owed in the foreclosure dispute.

Representatives of 3 Diamond and Preservation Equity Fund Advisors did not respond to requests for comment.

Also in St. Charles, Chicago-based Citrine Investment Group sold The River Glen of St. Charles at 975 North 5th Avenue to New York-based National Healthcare Properties for $40 million, records show.

Citrine originally bought the property in 2023 for $19 million with a $13 million mortgage from First National Bank of Omaha. The senior living specialists, led by Lynn Jerath, focus on repositioning distressed properties. It’s unclear how much the company invested in the senior living community between 2023 and now.

Representatives National Healthcare Properties did not respond to requests for comment.

Over the past year, Citrine has been making new purchases in the Chicago area.

Citrine bought The Reserve at Geneva in an off-market sale at an undisclosed price, McKnight Senior Living News reported in December. The purchase was supported by a $15.5 million mortgage, records show.

And in May, Jerath’s firm bought Lexington Square, a 273-unit senior living community in Lombard, McKnight reported. Records show Citrine recorded a $7 million deed against the property as well as a $27 million construction loan.

Jerath said in an email that the purchases reflect Citrine’s confidence in the Chicago market and that the new properties present “meaningful opportunities to create value through active ownership.”