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Mainstreet signs operator for new health care properties

May 30, 2012

A Cicero-based developer has signed a national senior-living company to operate four properties it plans for Indiana.

Mainstreet Property Group LLC said Tuesday that it has entered into a joint venture with Des Moines-based LCS, parent of Life Care Services, for new projects in Wabash, Avon, Westfield and Crawfordsville.

Construction on Wabash Health and Wellness Suites, a $15 million nursing and assisted-living property, is under way. The projects are relatively small in scale—Wabash will have 70 skilled nursing and rehabilitation suites, and 30 assisted-living apartments.

LCS offers long-term care and rehab at most of the properties it manages, and the Mainstreet prototype allows it to extend those services to smaller cities, LCS Executive Vice President Rick Exline said.

Earlier in May, Mainstreet filed a prospectus for a new publicly traded company called HealthLease Properties Real Estate Investment Trust, which would be traded on the Toronto Stock Exchange.

Mainstreet is seeking to raise $110 million, according to a preliminary prospectus.

The Wabash project would be one of nine properties, along with six more in Canada, that would be part of the new REIT, a Mainstreet spokeswoman said.

The Mainstreet-LCS project site in Westfield is adjacent to Grand Park, and the site in Avon is at 10307 East County Road 100 North. Neither of those projects will be part of the new REIT.

Earlier this year, Mainstreet received approval from the city of Indianapolis to build a $15.7 million senior health care center at 16th Street and Arlington Avenue on the city's east side. The Metropolitan Development Commission approved the project in February after accepting Mainstreet Property Group LLC’s offer to purchase the property for $912,500.

The project would be Mainstreet’s first newly constructed facility in Marion County. In 2006, Mainstreet purchased out of bankruptcy the Highland Health and Living Center in Indianapolis at 2926 N. Capital Ave.

Overall, the company owns or co-owns at least 13 senior health care centers in Indiana, Illinois and Ohio, and has at least six more under development. It also plans to break ground on up to 12 centers by the end of the year.

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