When at first you don’t succeed, try again. That was one borrower’s motto when a financing placement attempt fell through with one lender, so they decided to go to Noah Juran of NorthMarq to get the deal done. To fund the construction of a senior care facility on the borrower’s existing senior living campus in Cincinnati, Ohio, Mr. Juran secured an $18.2 million construction loan through Stearns Bank, plus $5.5 million of equity from an undisclosed source. The debt, which features a three-year, interest-only term, comes in at 64% loan-to-cost. That puts the development cost at $28.4 million, or $346,300 per unit. Set to open in either late-2020 or early-2021, the project will include a mix of 31 assisted living, 32 memory care and 19 rehabilitation units. Those rehab units must be pushing up that high development cost.
The facility will join two other earlier phases developed by the borrower on the same campus. First, in the early-2000s, 80 independent living condos were built and sold off individually. Then earlier this decade, another 122 IL/AL units were added, but then sold in 2016.
