Berkadia has been busy this August, closing the sale of one senior living community and arranging financing for the development of another one. Joe Leon and Michael Thagard handled the sale, which featured a 310-unit independent living community in Westminster, California. The seller was the Zinn Group, controlled by the Zinngrabe family which had owned the community for over 30 years. The local market around Westminster and Huntington Beach is strong, with occupancies averaging above 98%. So the buyer, an experienced owner/operator, will be able to hit the ground running.
Then, to the development, for which Monica Newman originated a $31.76 million construction loan through HUD for a to-be-built, 170-unit active adult community in Aurora, Colorado. Spokane-based Inland Group is developing the community to include luxury amenities such as an indoor saltwater pool, a spa, a community garden, a wood workshop and a pub, among many others. Completion is expected by fall 2020. The loan features a 3.65% interest rate at 85% loan-to-value. That puts the development cost at about $37.4 million, or $220,000 per unit.