Fairview Village Residents and Staff Will Now Be Part of Seventh Largest Not-For-Profit Senior Living Provider System

Des Moines, IA, June 30, 2011 — Lifespace Communities, a Des Moines-based not-for-profit senior living provider, announces the acquisition of Fairview Village, a Continuing Care Retirement Community (CCRC), located in Downers Grove, IL. The senior living community will become part of a system that includes 11 other Lifespace communities located in seven states.

Upon completion of the transaction on August 1, a new name will be unveiled for the community. Lifespace recognizes the rich history of Fairview Village and will honor it as the new name is announced to reflect on the community’s new strength and new beginning as a Lifespace community.

“Following a detailed analysis, we determined that it just made sense within our strategic long-range plans of slow and steady growth to purchase Fairview Village,” said Scott Harrison, Lifespace president & CEO. “Fairview Village has a similar mission and commitment to the continuing care lifestyle, so this is a good fit for our organization.”

As new owners, Lifespace intends to embark on some initial capital investments to Fairview Village, which will include upgrades to the mechanical and electrical systems in the Health Center, and to provide for a complete renovation of that building.

Harrison and others from the Lifespace leadership team have met with residents and employees for an introduction to their organization and to ensure a smooth transition regarding ownership and operations.

“We intend to honor existing resident contracts, and any refund obligations will be paid according to those existing contracts,” added Harrison. “Staff will transfer employment to Lifespace Communities, including our wage and benefits program.”

Lifespace Communities also owns and operates another Chicagoland senior living community, Beacon Hill, located in Lombard, which is about seven miles north of Fairview Village. Having two communities in such close proximity will allow for a unique synergy between the two in terms of operations. “With Fairview Village and Beacon Hill so close together, we’ve appointed Blaire Goldstein as senior executive director for both communities,” noted Harrison.

“An ‘A’ rating from one of the nation’s major rating agencies is a significant achievement,” says Blaire Goldstein, executive director at Beacon Hill. “At a time when some continuing care retirement communities across the country are struggling financially, our ‘A’ rating is an important indicator of our financial strength
and stability.”

Tax-Exempt Bond Offering
The “A” bond rating allows Lifespace Communities, a not-for-profit organization, to raise capital more easily, with lower financing and debt costs. “We can meet our capital/construction needs in the future on more favorable terms,” Goldstein says. “That’s advantageous for our residents, who benefit from the capital improvements.”

The bond proceeds will be used in part for $1.2 million in capital improvements and wellness programs at Beacon Hill.

“We continue to reinvest in our community, enhancing the quality of life for all our residents,” Goldstein says. “As a result, our occupancy has remained consistent in spite of the economy. This was another factor in our ‘A’ rating.”

According to Fitch, the rating reflects Lifespace Communities’ light debt and strong debt service coverage, capital spending and revenue. It’s also based on the diverse locations of the 11 senior living communities, located in Minnesota, Iowa, Nebraska, Kansas, Illinois, Pennsylvania and Florida.

Highest-Rated System Provider
With multiple continuing care retirement communities (CCRCs) across the country, Lifespace Communities is considered a “system provider.” According to Jim LeBuhn, Fitch senior director, “Within the Fitch portfolio of rated credits, there is no system rated higher than Lifespace Communities.”

“We encourage seniors to scrutinize this kind of information before joining a community,” Goldstein says. “We want them to know that their community is a safe, sound investment.”

All 11 Lifespace communities are accredited by the Commission on Accreditation of Rehabilitation Facilities and the Continuing Care Accreditation Commission (CARF-CCAC). Only 15% of communities nationally have received this accreditation, which recognizes the highest standards in administration, finance, care and services to seniors.

Lifespace Communities, Inc. is a nationally recognized not-for-profit leader providing an active lifestyle to more than 4,500 seniors residing in 11 communities in seven states. Founded in 1976, the company’s mission is to create and sustain communities celebrating the limitless possibilities in the lives of seniors. For more information, visit www.lifespacecommunities.com and www.beaconhilllombard.com.

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“Our new corporate name and brand has been more than 30 years in the making and is grounded in what really matters to today’s seniors. While we have been delivering the full engagement and independence that seniors demand, we found that our former identity didn’t communicate our complete offering to our target audience,” said Scott Harrison, Lifespace Communities CEO.

“Our experience and research show that seniors want to enjoy the good things in life, have freedom from logistics and feel secure in their financial future. They want opportunities to make connections, explore self-expression, wellness and personal growth while giving back to the community. Lifespace encapsulates all these concepts in our new brand,” said Harrison.

The organization’s new name change includes a corporate identity system that adds “A Lifespace Community” to each well-established local community name and standardizes the design of all the organization’s facilities to create a consistent look.

The development of the new Lifespace Communities brand and identity included extensive market research and interviews with industry experts, residents, prospective residents and community leaders.

Research showed that seniors are more demanding about quality, choices and control. They want options, flexibility, lifestyle amenities and the ability to participate in decision-making in their retirement communities. Personal and specialized activities rather than group activities are in higher demand and seniors are interested in lifelong learning, community and retail services along with guest and family-friendly facilities.

“At Lifespace Communities we are answering the consumer demands of the baby boomer generation which includes being more resident-centered and providing more social connections,” said Harrison. “We have always maintained the highest customer service standards at our communities and that continues to be one of the top priorities for seniors. With a staff of 2,000 serving 4,500 residents, we can and do provide the best in customer service and quality health care for seniors.”

Lifespace Communities, Inc. is the seventh largest provider of not-for-profit senior independent living communities in the U.S. Founded in 1976, the organization owns and manages a network of 11 Lifespace communities in Florida, Illinois, Iowa, Kansas, Minnesota, Nebraska and Pennsylvania and is headquartered in Des Moines, Iowa. Residents number more than 4,500 and the organization employs a staff of 2,000.

Mr. Epp is chair and president of LawrenceDouglas County Biosciences Authority in Lawrence, Kansas. Previously, Mr. Epp was president of Bethel College and founding principal and CEO of Retirement Management Company. He has a Doctor of Jurisprudence from the University of Nebraska and is a member of the Kansas Bar Association.

Before his retirement, Mr. Kehm was a partner with KPMG and prior to 2002, Arthur Andersen. He has a B.S. in Business Administration and Master of Arts in Accounting from the University of Nebraska and is a Certified Public Accountant (inactive).

“We are very fortunate to have two such qualified candidates for our board of directors. Each brings a world of experiences that will continue to steer LCRC as a premier leader in the senior living field.” said Scott M. Harrison, President and CEO. Life Care Retirement Communities, Inc.(LCRC) is a nationally recognized, nonprofit leader providing services to more than 4,500 seniors residing in 11 continuing care retirement communities, Located in seven states; Florida ,Illinois, Iowa, Kansas, Minnesota, Nebraska, and Pennsylvania; and with over 2,000 employees, LCRC is the seventh largest nonprofit provider in the United States. Founded in 1976, our mission is to create and sustain communities celebrating the lives of seniors.