Newmark Grubb Knight Frank’s capital markets group arranged $37.2 million in construction financing and preferred equity for a 147-unit senior housing development in Portland, Ore., Commercial Observer has first learned.
BBVA Compass provided a $27.5 million construction loan and an institutional investor provided $10 million of preferred equity, the proceeds of which Portland-based Rembold Companies will use to build The Ackerly at Timberland.
The senior housing development, once completed, will total 162,000 square feet for independent living, assisted living and memory care residents. The Ackerly will also contain a separate area for parking, a courtyard and a porte-cochere entryway.
NGKF Capital Markets Senior Managing Director Jordan Roeschlaub and Managing Director Daniel Fromm secured and structured the financing on behalf of the sponsor.
“Rembold’s expertise and proven track record developing senior living facilities allowed us to structure a favorable deal for our client,” Mr. Fromm told CO. “The Ackerly at Timberland will be the perfect complement to the borrower’s other senior housing properties in Portland, a city in which more than 10 percent of the population is over the age of 65.”
Rembold’s other local properties in Portland include the 154-unit Russellville Park East independent living apartments and the 140-unit Russellville Park West independent living, assisted living and memory care apartments.
In the first quarter of 2015, more than $3 billion in senior housing and nursing care facility transactions closed in the U.S., according to the National Investment Center for Seniors Housing & Care, a non-profit organization.
NIC reported that the majority of independent living properties had a stable occupancy of 91.2 percent—the same as the fourth quarter of 2014 and the best showing since late 2007. Rent growth in the sector also accelerated to 2.7 percent, the fastest rate since 2009, according to the organization’s statistics.
“There will continue to be financing for strong developers and operators of senior housing facilities and we look forward to working with clients across the country capitalize their projects,” Mr. Fromm said.