The May Report: 7/15/2011: Brad and Eric, skip this — keep walking: Remember Ted Widen’s $20MM business, chicago-scene.com? Forget about it. Groupon and other factors have killed it since Ted’s advertisers will no longer eat the dog food. So, Ted is starting a new business and wants some help from smart and sophisticated investors; Lisa Madigan wants to interview Groupon officials on the issue of whether they are violating state laws

Editor and publisher: Ron May, ron@themayreport.com, ronaldmay@aol.com, www.themayreport.com , 773-525-3944.

If you missed an article, go here: www.tmronline.com/A55951/tmrarticles.nsf/vwFullNewsletter
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Business at the Speed of Light
Wednesday, July 20 from 8 to 10 A.M.
Illinois Institute of Technology’s Wheaton campus
Registration – $15 (includes breakfast)

“Business at the Speed of Light”

Illinois Institute of Technology (IIT) and NewGen Business Solutions Cloud Series

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How other businesses have adopted innovative practices and real-life solutions to grow their business through technology using the Cloud
How IIT and its students are assisting businesses

Agenda:
7:30 – 8:00 Networking, Registration, and Continental Breakfast
8:00 – 8:30 Four Core Competencies
8:30 – 9:00 Marketing at the Speed of Light
9:00 – 9:30 IPRO Demonstration
9:30 – 10:00 Business Questions and Roundtable

For more details or to register, visit www.cpd.iit.edu/cloudcomputing, or contact Scott Pfeiffer, Director of Outreach at Illinois Institute of Technology at pfeiffer@iit.edu or call 630-682-6001
++++++++++++++++++++++++++++++

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Join us for IPTComm 2011 – the only international academic conference solely devoted to IP telecommunications research

WHEN: August 1-2, 2011

WHERE: Illinois Institute of Technology, Chicago

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WEB: www.iptcomm.org

PROGRAM:

The program includes keynote talks, invited talks and presentations of peer-reviewed papers published in-cooperation with the ACM. This is complemented by industry-focused talks and demonstrations. Highlights of the program are listed below. For more detail, and to register for the conference and hotels, please visit our web site at www.iptcomm.org . The technical program will be complemented by social events at some of Chicago’s great restaurants and venues. www.iptcomm.org/program/social/index.html

KEYNOTES:

Harald Alvestrand of Google: Real-time Web: Multimedia from specialty item to commonplace component

Scott Bradner of Harvard University: The evolution of IP from Has-been to Is-all

INVITED TALKS:

Brian Rosen, Neustar: Next Generation 911

Mohammad Shahidehpour, IIT: Smart Grid

Vijay Gurbani, Alcatel-Lucent: SIP Common Log Format

Bruce Lowekamp, Skype: Reflections on P2P Telecommunications

TECHNICAL PROGRAM:

Please see our web site at: www.iptcomm.org

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QUESTIONS:

Visit www.iptcomm.org

Carol Davids, Illinois Institute of Technology

IPTComm 2011 Conference Co-Chair

Email: chairs@iptcomm.org
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TABLE OF CONTENTS

– Briefly noted, by Ron May
– Lisa Madigan wants to question Groupon officials on whether Groupon’s daily deals violate state gift-card laws
– Other mail (4 messages)
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Briefly noted, by Ron May
* Ted Widen comes close to blaming the failure of his long time business, www.chicago-scene.com on Groupon — you know, that little start-up over on Chicago Avenue in the old Wards building.

Ted called it right in September 2010 when he told the audience of about 200 at midVentures LAUNCH at The Syncubator (remember that place?) that a restaurant owner would be crazy to use them. BTW, he still says that. I spoke to him today, Friday, July 15th, and he told me that vendors are driven to use Groupon by desperation and their inability to pay the rent. “They’re willing to lose money to pay the rent,” he told me today.

I complimented him this afternoon for his candor back last September and his willingness to go against the grain and the “group think” that was overtaking us with respect to the great Groupon. That was a heady time and Ted was willing to speak what he saw as the truth.

Ted’s own customers who paid for advertising in his glossy freely distributed diminutive magazine for years have cut back and consequently, he has ceased monthly publication of his Chicago Scene Magazine. He stopped monthly publishing two months ago and is now shifting to quarterly, if he continues it at all. I did not ask him, but how has Chicago Social handled the downturn?

Now remember, this is the business that Ted told me was worth $20MM a bit over a year ago. Here’s TMR on 3/1/2010:

++++++++++++++++++

Meanwhile, at the Social Media Club Chicago Thursday night, Ted Widen showed up — you know Ted “I’m a legend in my own mind” Widen. His wife Cory is a real huba huba huba. I still recall the cleavage from when we met years ago at Matsuya sushi restaurant at the sushi bar many years ago. BTW, they just had a baby. So now they have a nine year old and a new born.

I asked Ted what his business, www.chicago-scene.com is worth these days. He said unflinchingly that it is $20MM. I asked him for clarification by email, and whether he really believes that, but have not heard back. No matter, but what is he basing that on?

++++++++++++++++++++++++++++++++

Ted freely admitted to me today that Chicago-Scene and the magazine is toast.

He then described his new business and quickly added, “Chicago is the city that doesn’t work.”

Why? Well, the usual red tape and the a&&hole factor. Some guy at the City’s department of events or whatever is an A-H, Ted told me and Ted added that he told the guy that.

Ted has been holding a huge boat party every year on Lake Michigan with about 800 boats. This year he wanted to have 1,500 boats and was told no.

The reason he was given was security costs, etc. But it could be that he was not greasing the right hands or kissing the right butt.

Boat parties on the Lake aside, Ted has a new business in the offing and he wants some help.

There are only 5,000 slips for boats on Lake Michigan for all the harbors. That’s it.

Ted said that there is no peer-to-peer sharing of boats as there are for cars with firms like i-Go. Ted sees a market demand here and an unfulfilled need that forms the basis of a business he is developing. .

He already has ac trial site called www.boatsharedirect.com. Building the site has been a lot of work, he told me.

He’s still working on the revenue model. How to monetize this? Charge a monthly fee or take a piece of the deals?

Ted Widen has always thought big. He wants to expand beyond boats to other things like cars and planes. And he wants people to be able to do swaps. I have a boat in the Caribbean and you have a Ferrari and we can do a swap. You get ten trips on my boat for the season and I get x days to use your Ferrari.

Ted explained that the boat owners want to be able to pre-screen the folks who use their boats and that can be done through his system. There is checking on both sides in this business.

Also, if I understood correctly, the owners of the boat slips (“parking spaces” for boats) will cancel your slip if they find out that you are doing peer-to-peer sharing or renting out your boat. Why they do that I don’t know but the big player in this field is www.chicagoharbors.com, Ted said. Again, not sure about this but the management company may be WesTrac.

Anyway, the 5,000 slips for Chicago harbors are only a small fraction of the potential market and as Ted says, “Where you get grief in Chicago, Fox Lake is no problem.” Ain’t it the truth!

I did call a guy I know who sails often every year and he said that there are some possible reasons for the obstacles Ted faces. One is that all the commercial charter boats as opposed to the private use boats tend to be docked in one spot and maybe the management firm, WesTrac, is charging them more.

And with respect to renting out boats, there may be some legit concerns about security. If you have a password for the harbor where your boat is docked, and now you’re giving that out to strangers, you could be endangering other boat owners by offering access to your slip to a stream of traffic from strangers.

With respect to the boat party problem which is really secondary, my source asked who gives out the permits for boat parties. Maybe Ted needs to go to the alderman who runs the committee in charge of those permits, he suggested. It could be the Coast Guard or maybe the park district. I suspect it is a Chicago operation and not the Coast Guard.

Ted has some ideas on how to get around these problems. Boat owners can communicate privately with the renters. They can exchange private emails showing pictures, etc. That way, the slip owners and the management firm need not know what they are up to. But all of this is just a local Chicago issue. Ted is looking to build his biz nationally. .

Rahm, my question is whether you intend to take a stab at the endemic corruption in the Chicago system. Talk to any restaurant owner or bar owner and ask him or her about the difficulty in getting a liquor license or an outdoor patio permit. Zoning issues on everything.

TIFs, whatever. When will you not have to grease the wheels?

I don’t know if Widen would pay a bribe and I didn’t ask him, but my gut feeling is that he would rather tell the guy where to stick it.

Ted would like to talk to sophisticated and smart investors who can help him build this business beyond just boats to other things including high end cars and planes. He wants to get a straight deal and we talked about how that would leave Eric and Brad out of it since they have a reputation for schnoring. Translation: they take too much for themselves and leave the entrepreneur with little left over. Look at the Groupon S-1 for evidence of that.

+++++++++++++++++

tinyurl.com/6zbax3p

schnorer

YiddishEnglish
N beggar, cheapskate

+++++++++++++++++++++++++++

Ted can be reached on his cell at 312-593-1180. I think his email at ted@chicago-scene.com still works. And Ted, if a guy named Phil T. or a guy named David D. calls, hang up.

* Speaking of bribes, my very recent information is that the guys who run Flash Cab including JR and Jack and some of the dispatchers are on the take.

Two drivers have talked to me about it in the last two days. More on that Monday.

Flash is not the only “on the take” firm. The taxi firm Dispatch has recently bought Nissan Altimas for $25K each which is a lot more than the $8K they charge for a two year old Crown Victoria which is sold at a police auction. The Altima will last for five years and the Crown Vic is for good for only three years since it is bought used (at two years). But instead of charging $50 for a 12 hour shift, they’re charging $75. Gas costs for the Altima which is a hybrid car are far less than for the Crown Vic. The owners want a part of that reduced cost for gas for themselves. One can make a case for that, but if the cab driver is paying more for the lease, shouldn’t he get part ownership of the car?

Gas for a Crown Vic is expensive, as much as $75 a day. Gas for a Toyota Prius can be $15 a day for weekdays and $20 a day on weekends, a driver told me a few weeks ago. That big difference allows for some games to be played.

How does the “on the take” set-up by dispatchers or the managers work? Many ways.

One big source of graft is the corporate vouchers. These are pre-paid rides, so say a guy is using six of them a week to go to the hospital at $50 per ride for $300, then the dispatcher who knows this can hit up the driver for some of it.

When it comes to medallions which are going for at least $200K each these days, JR at Flash knows everything. He is one of the first to know when a medallion becomes available.

In addition to corporate vouchers, suburban or long distance rides are another arena in which the dispatchers want to be paid off by the drivers. Of course, there are also rides to O’Hare but most drivers are now telling me that O’Hare does not pay.

BTW, does anyone know if we are still getting the restaurant show for next year? There was some scheduling conflict with the G-8 conference and they asked the Restaurant show to move its time by one week.

One driver told me that he personally saw dispatcher Margie (or Marsha?) taking cash from drivers.

Look, I have no proof of any of these accusations and they are still in the realm of speculation and rumor and opinion. I have not witnessed any bribes or anyone asking for one or taking one and I am not accusing anyone of anything.

The Chicago cab business has been taken over to some degree by New York players and the Russians and they are more inclined to play fast and loose.

* I spent today dealing with bureaucracy at Northwestern. I am gathering medical records to send to the folks in Madison, WI so I can get on the kidney transplant list there. Illinois Masonic has one office and that took about an hour from the time we entered the records office. But Northwestern does not have everything in one place since the hospital records are separate from outpatient and doctors visits records. That meant going to two offices and the second one on the 1st floor of the Jack and Dollie Galter building does not have the records but has to call another office for them and that office is not open to patients.

All of this took time of course. BTW, while I waited for the records, I went up to the 19th floor of Galter to see if I could make an appointment with my cardiologist Dr. Nancy Gracin. She is officially leaving Northwestern on August 31st. They are not scheduling any more appointments for her but her nurse Mary (of two years) did talk to me and she said that Nancy is moving across the street to join a private practice. I asked her if I could continue with Nancy and she hinted that yes, I could, but it is considered a conflict for them to send notice of that. This is the same issue that any brokerage firm has when a broker leaves. I am a customer (or patient) not just of Dr. Nancy Gracin but also of the Northwestern Medical Faculty Foundation, so they did send a letter with three possible new cardiologists for me to choose from but they did not say that I could stay with Nancy. Of course not. They are not going to slit their own throats at NMFF. I have been with Dr. Gracin for many years, at least since 1999 and she was referred by Drs. Pick and Sobel. They dumped me in March since they also jettisoned all their Medicare patients, but we have mentioned that many times.

* Peggy Smedley, Steve Pazol, Ellis Booker, Scott Miller, Phil Tadros, Rich O’Brien, Howard Tullman, Michael Krauss, Sima Dahl, Mark Achler, Griffin Caprio, BarCamp, Chicago Now and many others, you’re next.

BTW, I heard today but have not confirmed that NYC gave a $6MM award to Chicago for innovation. Is this true? Bruce Montgomery, what do you know about this?

___________________________________

Lisa Madigan wants to question Groupon officials on whether Groupon’s daily deals violate state gift-card laws

www.chicagobusiness.com/article/20110715/NEWS07/110719902/illinois-attorney-general-wants-to-query-groupon

Illinois attorney general wants to query Groupon
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By: John Pletz July 15, 2011
Today’s Headlines
7/15/2011

Blagojevich’s North Side home on the market
State creates fund to help under-water homeowners
CME calls an end to pork-belly trading
WLS-AM replacing Cisco Cotto with new show from Bruce Wolf, Dan Proft
Discover Financial sees lowest charge-off rate in four years
McDonald’s says ad costs would rise if it loses Happy Meal-suit

View All of Today’s News Headlines(Crain’s) — Illinois Attorney General Lisa Madigan is questioning how Groupon Inc.’s popular online coupon business fits into Illinois law after Connecticut’s attorney general started an inquiry into whether Groupon’s daily deals violate state gift-card laws.

Representatives of Ms. Madigan’s office had hoped to have set up a meeting with Groupon executives by now, but their meeting was scratched due to scheduling conflicts, an attorney general’s spokeswoman says. The two sides hope to meet next month.

“All we’re doing is having a conversation to get a sense of how they operate,” a spokeswoman said. “We’ve had no consumer complaints and no indication any Illinois consumers have had any issues with the company.”

Groupon, which has filed documents to begin issuing publicly traded stock, couldn’t be reached for comment.

Legal issues are among the many challenges facing the fast-growing Chicago tech startup as it prepares to go public later this year. Until now, though, questions haven’t come from law enforcement officials.

Groupon has been sued more than a dozen times by individuals claiming its emailed deals, which generally are good for six months to a year, violate federal laws that prohibit gift cards from expiring in less than five years. Because Groupon requires customers to pay up front for a deal, it blurs the line between coupon and gift card.

Consumers also have claimed that they often are unable to use the deals before they expire, allowing Groupon and the merchants to pocket the cash.

Merchants are required to give customers a credit for the value of what they paid for a Groupon even after the original discount expires. But lawsuits claim the policy is not well-known.

Another point of contention is whether the merchant should honor the amount the consumer paid or the value of the original deal.

In a letter to Groupon CEO Andrew Mason this week, Connecticut Attorney General George Jepsen seeks information about terms of the company’s deals, expiration policies and the amount of sales generated in the state.

The Connecticut attorney general’s inquiry was prompted by a consumer complaint.

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Mickey D. wrote:
It’s a hug from the Machine.

I worked for a company that experienced rapid growth. Suddenly, for no apparent special reason, we started getting special attention from various ‘very-connected’ Chicago legal firms.

After we agreed to add a few ‘consultants’, the special attention waned.

Amazing.

I’m guessing the Machine wants some of what Groupon is printing, and I’m not talking about coupons…
7/15/2011 3:19 PM CDT on Chicago Business
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Philip C. wrote:
Oh gee let’s see now… aren’t these are the same people that “claim” to want to bring jobs to Chicago and the State of Illinois and as soon as a company starts to do that they pull out the “let’s make sure they are operating within the law” card. Which by the way is really the card called “are we for sure taxing the living you know what out of these guys”. Instead of jumping on Connecticut’s bandwagon shouldn’t it be Ms. Madigan’s concern as the chief legal person to make sure that other states aren’t arbitrarily casing consternation to legitimately run Illinois corporations? Just a thought.

7/15/2011 3:17 PM CDT on Chicago Business
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M O. wrote:
Madigans, Quins, Ryans, Daleys, Cullertons – Im starting to the think Chicago Code was right, there really is an Irish Mob running things here.
7/15/2011 3:02 PM CDT on Chicago Business
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John C. wrote:
Lisa is looking to manufacture headlines and complaints. Write your union hall if you think Groupon should give the consumer advice on how to eat at restaurants and money back if their experience is less than they are ENTITLED to.
7/15/2011 1:11 PM CDT on Chicago Business
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doug n. wrote:
I think groupon should not be hounded for this but a groupon does fall under the definition of a gift certificate. When this definition was written it was intended to go after the big box retailers who did not prominently display and expiration on their plastic cards. The work around to all this is to amend the law to the point: “unless the expiration date is printed in YY bold face type.”

Here is the definition from ILCS

(815 ILCS 505/2SS)
Sec. 2SS. Gift certificates.
(a) “Gift certificate” means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the holder of the record for the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored‑value card or certificate, a store card or a similar record or card.
7/15/2011 11:49 AM CDT on Chicago Business
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Joel G. wrote:
Enough….. Who wants to start up a business in Illinois when every government agency is down their throat looking to litigate. The amount of money business spends in the United States on government compliance and litigation could literally balance the U.S. budget. Business owners put everything on the line to start and grow their business, they spend sleepness nights worrying about the future of their companies, they hire and bring new opportunities to their local communites and then government puts up road blocks and raises taxes. Go ahead and investigate Groupon…it’s in keeping with the anti-business programs of Illinois government….By the way, check with Detroit on how to plan for downsizing when businesses leave…..Joel G
7/15/2011 11:22 AM CDT on Chicago Business
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S L. wrote:
I couldn’t agree more will the above comments.

Lisa Madigan sits aside while her father and his buddies run roughshod over the people of Illinois and instead attacks a growing business. Like always in Illinois as soon as there is success anywhere a hand is out from the politicians…threaten them, tax them, get them to lobby (hiring their friends), accept large donations and, finally, co-opt those that play along so they too become insiders.

7/15/2011 10:29 AM CDT on Chicago Business
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Michael S. wrote:
Lisa please investigate your father not legitimate inovative law abiding buiness. He takes advantage of the average citizen of Illinois more than anyone else. 66.7% increase in income tax, higher utility bills by requiring us to buy expensive synthetic gas and paying ComEd for a smart grid that will raise our bills not lower them. All laws passed by him after massive campaign contributions to him by interested parties. Now that is a crime. Lisa I would be careful if I were you your Dad would have no problem putting you in jail to save his crooked hide.
7/15/2011 10:12 AM CDT on Chicago Business
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Laura O. wrote:
Oh great. Let’s chase away another viable business to another state. Maybe they could be a casino in its place.
7/15/2011 9:45 AM CDT on Chicago Business
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Gary T. wrote:
For those who didn’t have the privilige of law school or have access to someone who did, these types of AG complaints are very common. Many laws at the state law/legislative level are not particularly well vetted prior to submission and consequently it’s very common for a law intended for one area to be applied somewhere else.

Years ago, I fought (in Connecticut) a case where usury laws were being applied to limit growth in the rent-to-own segment.

Another area where there is frequent overlap is guaranties vs warranties vs insurance. It’s very common for attorneys to look for financial recoveries using laws unintended in their application.

This may not be as personal against Groupon, but rather the CT AG merely using Groupon to test and possibily invalidate CT’s coupon law. Notice that neither Groupon or their counsel had a response. Why would they, it’s no big deal and as much a matter between the CT AG and the CT legislature where Groupon is just the foil.
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Other mail (4 messages)
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#1: Aidan Salvi??? Do you know anything about this guy in the venture world in Chicago?
InboxX

Reply |Steve Omans to me
show details 5:05 PM (3 hours ago)

fromSteve Omans steveomans@gmail.com
toron@themayreport.com

dateThu, Jul 14, 2011 at 5:05 PM
subjectAidan Salvi??? Do you know anything about this guy in the venture world in Chicago?
mailed-bygmail.com
signed-bygmail.com

hide details 5:05 PM (3 hours ago)

Ron,

I am starting a company Deal Me Health, LLC. There is a guy I just met named Aidan Salvi who is an Angel Investor. Do you know him?

–

Best,
Deal Me Health, LLC
Steve Omans
_________________________________
#2: Chicago Booth is coming to Schaumburg!
InboxX

Reply |Chicago Booth Part Time MBA Programs to me
show details 7:12 AM (13 hours ago)

fromChicago Booth Part Time MBA Programs eveningweekend-admissions@chicagobooth.edu
reply-to8317067.chicagobooth@iad01.hobsonsmail.com

toRon May

dateThu, Jul 14, 2011 at 7:12 AM
subjectChicago Booth is coming to Schaumburg!
mailed-byiad01.hobsonsmail.com
signed-byiad01.hobsonsmail.com

hide details 7:12 AM (13 hours ago)

Images are not displayed.
Display images below – Always display images from eveningweekend-admissions@chicagobooth.edu

Greetings from Chicago Booth,
If you think now is the time to get your MBA, why not explore what Chicago Booth has offer? We have two convenient options that allow you to continue working while you study in Chicago:
The Evening MBA and Weekend MBA Programs offer a flexible schedule that features evening and Saturday and Sunday classes to professionals ready to take their career to the next level.
The Executive MBA Program provides mid- to upper-level managers the Chicago Booth MBA experience on three continents- Asia, Europe, and North America – with classes offered every other week on Fridays and Saturdays.
Ready to learn more about our programs?
Come meet us in Schaumburg on Wednesday, August 3 from 6:30 to 8:30 p.m.
Enjoy beverages and hors d’oeuvres, hear a brief presentation about our MBA programs, and talk to current students, alumni, and admissions directors.
Also, don’t forget to bring your questions about Chicago Booth and tell us what you’re looking for in an MBA program.
Register Today >
Best Regards,
Chicago Booth Admissions Team
___________________________________
#3: Subject: Tech 100 – huh?
Date: 7/14/2011 8:30:57 P.M. Central Daylight Time
From: Name withheld upon request
To: ronaldmay@aol.com

At first glance of the top 100 tech leaders chosen by midventures, I can think of dozens of deserving people that didn’t make the list. Who exactly was involved in the voting process and final decision? I’m SURE there was someone more deserving than you and many others on the list. I’m just saying, and I think you agree.

I know most didn’t participate in the obvious self exaltation, but this is kind of joke and frankly makes our community and industry look bad. Many of the people on the list belong there, but again a number of people in town are far, far, far more deserving. This was a poor attempt to win favor.

You should do your own top Chicago tech leaders list.

Don’t publish my name or email if you publish this. Thanks.
_______________________________
#4: Harrison Street Announces Joint Venture with Bickford Senior Living
InboxX

Reply |Millar, Michael
show details 10:00 AM (10 hours ago)

fromMillar, Michael MMillar@recg.com
to”Millar, Michael”

dateThu, Jul 14, 2011 at 10:00 AM
subjectHarrison Street Announces Joint Venture with Bickford Senior Living
mailed-byrecg.com

hide details 10:00 AM (10 hours ago)

Following is a press release announcing a joint venture between Bickford Senior Living and Harrison Street Real Estate Capital. The joint venture immediately completed a $62 million recapitalization of six midwest properties and anticipates total investments exceeding $200 million.

Should you wish to speak with Chris Merrill or Michael Gordon at Harrison Street Real Estate Capital, please let me know. I can be reached at 312-644-7211.

Michael

N E W S R E L E A S E For Immediate Release

Bickford Senior Living and Harrison Street Real Estate Capital Form Joint Venture, Acquire Six Midwest Assisted Living Communities and Look to Future Investment Opportunities

Chicago, Ill. (July 14, 2011)—Bickford Senior Living, a Kansas City-based developer and operator of assisted living and memory care communities, and Harrison Street Real Estate Capital, a Chicago-based real estate private equity firm, have entered into a joint venture resulting in the immediate acquisition/recapitalization of six assisted living and memory care communities that Bickford currently manages for approximately $62 million.
These assets will serve as the foundation for what the partnership believes will become one of the preeminent portfolios of assisted living and memory care properties located in the Central Midwest. The partnership already has assembled a pipeline of future acquisition and development opportunities and could make total investments exceeding $200 million.
The initial investment was made on behalf of a new company created by the partners, of which both members invested in the assets. The majority of the equity came from Harrison Street Real Estate Partners III, LP, the third fund launched by Harrison Street, which focuses on investing in the education, healthcare and storage segments of the real estate market.
The properties acquired by the partnership include six Bickford Senior Living communities in the Chicago, Kansas City, Omaha and Des Moines metro areas. This portfolio consists of 342 private-pay rental units that generally cater to an affluent resident base that is in need of assisted living and memory care.
The partnership’s future business plan involves developing, acquiring, repositioning and operating assisted living and memory care properties with a regional emphasis in the Midwest. This strategy builds on Bickford’s existing 40+ community portfolio strategically located in Illinois, Indiana, Missouri, Kansas, Iowa and Nebraska. The partnership is currently evaluating opportunities to develop and acquire additional senior housing assets that can benefit from Bickford’s development and operating expertise, reputation and infrastructure. The joint-venture’s business plan contemplates approximately $150 million in additional transactions during the next three years.
“We have developed a strong relationship with Harrison Street during the past year,” said Michael Eby, President of Bickford Senior Living. “It is their overall philosophy, knowledge of the senior housing sector, partner focus and access to capital that led our decision to team with them. Additionally, Harrison Street helped us design the ideal partnership for our situation. We are able to lean on their strength and consistency.”
Eby added that through Harrison Street University, an in-house six sigma training center, Bickford is able to take advantage of and draw on valuable resources that help the business operate better and more efficiently.
“Bickford is one of the most recognized and respected senior housing brands in the Central Midwest, with a strong reputation for providing top-notch care to its residents,” said Michael Gordon, Senior Vice President, Harrison Street Real Estate Capital. “Our partnership will focus on leveraging Bickford’s existing platform to strategically increase its footprint within its current markets and expand into new markets, with an emphasis on quality and controlled growth.”
Bickford currently operates more than 2,000 assisted living and memory care units. Harrison Street’s real estate assets under management total approximately $2.7 billion, including a senior housing portfolio of more than 5,000 units.

About Harrison Street Real Estate Capital, LLC

Harrison Street Real Estate Capital is a commercial real estate private equity firm established in 2005. The firm focuses exclusively on the education, healthcare and storage segments of the US real estate market. The firm, on behalf of Harrison Street Real Estate Partners I, II and III and its REIT Securities Division, has more than $3.0 billion in assets under management. The firm currently owns approximately $2.7 billion in real estate assets which includes over 17,500 student housing beds, 5,300 senior housing / assisted living units, over 62,100 self-storage units 1.1 million square feet of medical office space and 3,300 dry & wet boat storage. This portfolio makes Harrison Street one of the largest managers dedicated to these demographic-based real estate sectors. For more information on Harrison Street please visit www.harrisonst.com>.

Contact:

Christopher N. Merrill Michael Millar

Co-founder, President & CEO Director of Consulting Services

Harrison Street Real Estate Capital LLC Real Estate Communications Group

312-920-1851 312-644-7211

cmerrill@harrisonst.com> mmillar@recg.com

Michael Millar
Director of Consulting Services
Real Estate Communications Group
415 N. State St.
Chicago, IL 60610
312-644-7211
mmillar@recg.com>
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