In yesterday’s brief post, I noted that The Admiral at the Lake (a Chicago-based Kendal affiliate) had, like Kendal-Crosslands Communities earlier this year, decided to withdraw from the Kendal system. I now have some additional background on the situation. Note that the following is not based on official communications from either Kendal Corporation or The Admiral and may contain mistakes. If you find an error, please let me know I will correct it promptly.

The Admiral at the Lake is the successor to The Old People’s Home of the City of Chicago (founded in 1858 as The Home for Elderly and Indigent Females). It purchased a hotel near Lake Michigan with the plan to create a new high-rise retirement community there. In 2007, the hotel that previously occupied the site was demolished. But I imagine that was an inauspicious time for funding construction, given the 2008 collapse of the housing market, which made homeowners reluctant to sell their homes and move to a retirement community.

The organization signed an affiliation agreement with Kendal Corporation in 2009; and subsequently, with Kendal’s support, obtained financing through the Illinois Finance Authority (IFA) for building the current facility in 2010.

The Admiral faced a financial crisis in 2017. As a result, The Admiral again turned to the IFA, with Kendal Corporation support, to request approval of bonds for a $175 million refinancing of The Admiral’s debt. According to the IFA documentation, The Admiral was struggling to pay off its debt and, at the time, had less than a month’s worth of cash on hand. The refinancing was approved, and it reduced the debt burden significantly. Debt payments were reduced by more than $1 million/year.

Now, The Admiral’s financial troubles seem to be largely behind it. In 2021 (the most recent year for which I could find financial information) it was close to breakeven. Its expenses were $29,566,939, and it was able to cover 97% of that from fees and contributions.

Based on information from a source familiar with the situation, it is my understanding that the Admiral’s administration has decided its affiliation with Kendal Corporation is no longer as important as it was in the past. Apparently, the programs offered to Kendal affiliates (such as group purchasing) are not considered essential, and neither the Kendal name nor the Quaker connection is considered important to most potential residents. Thus, The Admiral’s administration made the decision to disaffiliate and save hundreds of thousands of dollars in annual affiliation fees.

I hope that readers with more definitive information about the situation will chime in via the comments box, below.