We all have heard how construction costs have soared, rendering some new developments to be too expensive, at least for now. They just won’t pencil out at current cost levels, and you can only push unit rates just so far.
Bucking this trend is Carlson Management, a California-based provider and developer. The company has developed five ground-up seniors housing communities to date, totaling 518 units in California, and has four other communities under construction or pre-construction with another 368 units. It also purchased two small communities in 2018.
To help continue with its growth, Carlson launched an equity joint venture with RSF Partners to pursue its growth objectives. To kick things off, they secured financing for the development of Bascom Senior Living, an 83-unit assisted living and memory care community in the affluent Campbell neighborhood of San Jose, California.
JLL Capital Markets arranged the joint venture on behalf of Carlson and RSF, and secured $31.3 million in construction financing for this first development in the JV. The four-year, floating rate loan was placed with a bank. The JLL team included Bercut Smith, Alanna Ellis and Lillian Roos.
