HOUSTON--CBRE Capital Markets' Debt & Structured Finance team has secured $49.7 million in construction financing for The Village of River Oaks, a 195-unit, class A senior housing community located in Houston.  

CBRE secured a six-year floating-rate loan, which includes interest-only for four years at an all-in-rate of 2.33 percent. Financing was provided by a regional bank.  

Aron Will and Austin Sacco of CBRE's Houston office arranged the financing on behalf of the borrower, a joint venture between Bridgewood Property Co. and Harrison Street Real Estate Capital.

“There has been a lot of discussion of overbuilding in senior housing within the Houston MSA in the past 12 months by virtue of the fact that construction exceeds 15 percent of existing supply,” Will told GlobeSt.com. “Categorically, this community very different; it's a high-barrier-to-entry market with literally no existing supply. We have seen relatively few infill projects nationally that are comparable with respect to unmet demand in a Primary Market Area.”

Located at 1015 South Shepherd Drive, the senior housing community will include a combination of independent living, assisted living and memory care. The community will be operated by an affiliate of Bridgewood. Construction of the development is scheduled to begin in the third quarter. 

Last year, CBRE Capital Markets originated over $808 million in senior housing debt across 60 assets, and was Freddie Mac's No. 1 senior housing lender in the country, the firm says. Year-to-date through June 15, CBRE Capital Markets has originated over $940 million in senior housing debt across 46 assets.