Plans for an Avanti Senior Living community in Covington, Louisiana (New Orleans MSA) have been in the works for several years. Now, it is one step closer, with Aron Will of CBRE arranging a $14 million construction loan to fund the project. A regional bank provided the financing, which features a four year, floating rate term and 48 months of interest only. Avanti is developing the project in a joint venture with Iron Point Partners, an investment manager that manages several real estate private equity funds.

Designed with the local style in mind, the planned community will resemble a large manor house, featuring 60 assisted living units and 50 memory care units. Adding to its appeal, the property is within the Watercross Healthcare Campus, which is home to the new Ochsner Medical Hospital and within 15 miles of several other hospitals. Rents will begin at $3,800 per month and go up based on care levels.

At a development cost of $21 million, or 190,900 per unit, the community is on the higher end in terms of cost (the average for the state is $177,500 per unit for new construction projects according to our in-house development database going back to 2013). The development represents Avanti’s entrance into the Louisiana market, having begun their operations in Texas several years ago. There is another project in the town of Lafayette, and the company has plans to expand into Arizona, Georgia and Florida.