After a successful start to the year for M&A, Newmark was quite prolific on the financing front as well. The team arranged $53 million in acquisition debt from Regions Bank for The Carlyle Group’s December 2021 purchase of The Solea Portfolio. Totaling 463 active adult units, the three communities are located in San Antonio, Katy and Houston, Texas, respectively. They were previously owned by a joint venture between Entrepreneurial Properties Corporation and Sparrow Partners.
Next, Newmark arranged four bank refinances on behalf of Caddis Partners for four of its “Heartis” communities. Comerica Bank provided a $20.8 million loan for the 106-unit Heartis North Shore in Wisconsin and a $21 million loan for the 96-unit Heartis Village Orland Park in Illinois. Trustmark refinanced the 167-unit Heartis Fayetteville in Georgia. Finally, Synovus Bank provided a $26.67 million loan for the 178-unit Heartis Mid-Cities community in Texas.
Lastly, construction lending is still alive, and Newmark closed three loans in the last couple of months. East West Bank provided a $23.6 million loan to Braemar Partners to build Arbor Terrace Basking Ridge, an 80-unit assisted living/memory care development in New Jersey. The debt covers about 65% of the project costs. Regions Bank and Bank of Oklahoma provided $82.23 million in debt (at 60.5% loan-to-cost) for Trillium Tysons, a $135.8 million senior living project in Tysons, Virginia being developed by Silverstone Healthcare. The project is part of Silverstone’s pipeline of seven high-end developments in the Washington, D.C. metro area that could represent a total investment of possibly $700 million. The Tysons project results in a construction cost near $711,000 per unit, which is one of the higher per-unit project costs we have seen.
However, the final project being financed with the help of Newmark tops it at $720,000 per unit. Clearwater Newport Beach is a community in Newport Beach, California being built by Oppidan Investment Co., which received a $72 million construction loan from Regions Bank.
In total, this activity totals $922.95 million of closings, comprised of the sales, refinances, acquisition loans and construction debt.
