ACORE Refinances San Antonio Seniors Housing Development With $44M Loan
ACORE Capital has provided $43.7 million to Chicago-based Harrison Street Real Estate Capital to refinance a seniors housing development called Franklin Park Alamo Heights in San Antonio, Texas, Commercial Observer can exclusively report.
The five-year financing was brokered by CBRE, and it closed on Oct. 26.
“ACORE continues to be an active lender in the senior housing sector,” Lance Wright, a managing director at ACORE Capital, told CO in a statement. “We were attracted to this loan because Franklin Park Alamo Heights is a recently constructed, highly amenitized, Class-A asset located in an affluent area of San Antonio, with limited new supply.”
Franklin Park—located at 230 West Sunset Road in San Antonio—offers the trifecta of seniors housing floor plans in independent and assisted living and also memory care living and services.
The independent living floor plans range from one-bedroom units to three-bedroom arrangements; monthly rents start at $3,395, according to Caring.com, a seniors living listings website. The assisted living tier offers studios to two-bedroom units with rents starting at $3,625. The memory care facility includes studios and two-bedroom apartments; rents start at $5,795.
Founded in 2005, Harrison Street currently has $17.2 billion in assets under management, globally. Since the shop was opened, its real estate investment has included over 24,000 seniors housing units.
Investment volume in independent and assisted living climbed just over 27 percent on the year in the second quarter, according to a CBRE seniors housing investment and trends report on the first half of 2018. And many investors have moved away from the skilled nursing segment this year due to the regulatory environment and the need to retain licensed nurses and professionals on site.
While occupancies for memory care facilities have seen downward momentum this year, Harrison Street’s inclusion such facility, with the more investor friendly segments of independent and assisted living, is a beneficial long term play.
Phyllis Klein, a vice president of multifamily customer engagement at Fannie Mae, has told CO that the shop has focused on financing either independent living, assisted living or memory care projects, or it’s opted to invest in developments that incorporate all three components.
A project management official at Harrison Street didn’t immediately respond to an inquiry.