CBRE has secured a couple of financings for seniors housing clients on opposite sides of the country. First, in the Northeast, the team of Aron Will, Austin Sacco and Matthew Kuronen arranged a Fannie Mae loan to refinance a 269-unit rental CCRC located near Providence, Rhode Island. The property received a $39 million loan, or $145,000 per unit, with a seven-year term, fixed interest rate and two years of interest only.
The same CBRE team also arranged construction financing for a to-be-built seniors housing community in Portland, Oregon. Set in a 16-story high-rise in the city’s Pearl District, the community will feature 177 independent living, 77 assisted living and 20 memory care units. In addition to the neighborhood’s restaurants, shops and art galleries, residents will also be able to enjoy multiple dining venues, a beauty salon and street-level bistro at the location.
It will not be cheap to build. The developer, a joint venture between Alliance Residential Company and its institutional partner, secured a $103 million construction loan with a floating rate, full term of interest only and extension options. That comes out to about $435,000 per unit of the debt alone, putting the actual development cost likely well above that. Milestone Retirement Communities will operate the community on a third-party basis.