SAN ANTONIO--CBRE Capital Markets' senior housing debt and structured finance group in Houston has arranged acquisition financing on behalf of a joint venture between Franklin Development Properties and Harrison Street Real Estate Capital for Franklin Park Stone Oak, a class A assisted-living and memory-care community in San Antonio.
CBRE negotiated an $18.2 million, five-year, 36-month interest-only, floating-rate mortgage loan at 70 percent loan-to-value ratio for Phase I (assisted living/memory care), which Franklin Development built in 2011. Phase I of the project features 99 units.
“Rental Continuing Care Retirement Communities (CCRC) allow for residents to age in place seamlessly on one campus, which resonates with residents and adult children making decisions for their parents,” Aron Will, senior vice president with CBRE, told GlobeSt.com. “Because that model is performing very well, it is viewed by investors as very attractive and is valued most aggressively.
CBRE also negotiated a $22.1 million, five-year, 48-month interest-only, floating rate construction loan at 70 percent loan-to-cost ratio to develop Phase II (independent living), which will be adjacent to the existing campus.
Once completed, the property will offer 162 independent-living units, 66 assisted-living units and 33 memory-care units.
”The financing satisfied the borrower's objective to secure an attractive floating rate loan to recapitalize Phase I in addition to procuring a construction loan simultaneously for Phase II with the same lender,” says Will. “Given the community will function as one contiguous campus upon completion, having one lending partner made the most sense for the borrower.”
Franklin Park Stone Oak is located in far north central San Antonio on Encino Commons with direct access to Highway 281. The property is located near shopping, hospitals, entertainment, education and medical centers.
Will and Austin Sacco, with CBRE's senior housing debt and structured finance group, secured the financing for the loan. In 2014, CBRE Capital Markets' housing group has originated $808 million in senior housing financings across 60 assets nationwide.
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