Marcus & Millichap arranged $22 million in financing for The Springs of Scottsdale, a 143-unit independent living community in Phoenix, Arizona. Paul Winterowd secured the financing with a national life insurance company on behalf of Stellar Senior Living. The sponsor secured a five-year loan at 60% loan-to-value, with a competitive interest rate of 6.05% and a 27-year amortization schedule.
The property is located in the heart of downtown Scottsdale and offers one- and two-bedroom units equipped with full kitchens and individually controlled heating and air conditioning. Additional amenities include all-inclusive dining, housekeeping and linen services, a full-time concierge and a gym with daily exercise classes.
According to LevinPro LTC, Stellar Senior Living acquired the community in December 2023 for $16 million, or $112,000 per unit, at a 6% cap rate. That purchase price was funded through a mix of buyer equity and the assumption of an existing loan on the building. At the time, the asset generated positive cash flow of $966,000 on $4.87 million of revenues.
The Springs of Scottsdale was built in 1998 and had undergone renovations in excess of $1.0 million at some point prior to the Stellar’s acquisition. It was 81% occupied. Matthew Alley, Jason Punzel, Vince Viverito and Brad Goodsell of Senior Living Investment Brokerage handled the 2023 sale.
