Sarah Anderson of Newmark has closed some notable financing transactions in the last couple of months, in addition to arranging acquisition financing for numerous deals handled by the Newmark investment sales team. One of the closings was for Vivante at Turtle Creek, a to-be-built seniors housing community on the prestigious Turtle Creek Boulevard in Dallas, Texas. Set on 1.37 acres and rising 20 stories, the property will be one of the most luxurious seniors housing communities in the country. It will feature 193 total units, with 164 assisted living and 29 memory care units ranging in size from 900 to 3,000 square feet. There are also high-end finishes and unique amenities, such as a bowling alley, indoor saline pool and jacuzzi, golf simulator, chauffeured Mercedes transportation and a movie theater, among others. Some of the penthouse units would, we imagine, command some pretty lofty rents.
Newmark arranged a $180 million loan from Beal Bank, coming to $932,600 per unit in just debt. Assuming a typical loan-to-value of 70%, that would put the total development cost close to $1.3 million per unit. The bond market has usually funded such pricey projects, so it is interesting to see a bank taking the lead on this one. Maybe other banks can start stretching on construction projects, but Vivante at Turtle Creek also fits the archetype of “high-end, best-in-class, well-located” projects that banks are still willing to fund in today’s market.
Newmark also took out construction debt on an active adult community in Matthews, North Carolina. Inspire Royal Park was built in 2022 and is nearly stabilized, with occupancy above 70%. It features 204 units in four stories and was built by a joint venture between Harrison Street and Liberty Senior Living. Newmark arranged a $33 million bank loan with a three-year term and low-200s spread to replace an existing construction loan from another bank.
