CBRE secured acquisition financing for MorningStar at Arcadia (the “Community”) on behalf of a joint venture between Sabal Investment Holdings (“Sabal”), 12 North Capital (“12 North”) and MorningStar Senior Living (“MorningStar”). Aron Will, Vice Chairman of CBRE National Senior Housing, and Michael Cregan, Vice President of CBRE National Senior Housing arranged the financing. Post-acquisition, the Community will continue to be managed by MorningStar under a traditional third-party management contract.
 
CBRE originated a five-year, $20.1M floating rate loan with three years of interest only through a national bank to facilitate the acquisition.
 
The Community, originally built in 2014, is situated within the Arcadia submarket of Phoenix and is directly adjacent to affluent suburban markets such as Paradise Valley and Scottsdale. The Arcadia neighborhood is vibrant, with tree-lined streets, charming ranch-style homes and well-manicured gardens. It is also known for its trendy restaurants, boutiques, and views of Camelback Mountain. The Community includes 108 Assisted Living and Memory Care units and features a fitness room, a restaurant-style dining room, recreational program rooms, tropical aquariums, and a massage room, amongst other market-leading amenities.
 
The venture is planning a targeted capital expenditure program at the asset to facilitate a series of enhancements aimed at improving resident experience, optimizing occupancy and bolstering value.
 
“This acquisition highlights our strategy of partnering with premier owner/operators in high-quality, newer vintage senior housing communities,” says Frank Small, Founder and Managing Principal of 12 North. “We remain bullish on the future prospects of senior housing given the positive secular trends, near-term capital market dislocation and dynamic investment landscape. We are excited to complete our first investment with Sabal, who has been an incredible partner in supporting us and look forward to many more in the future.”
 
“Purchased below replacement cost, this high-quality asset offers substantial upside potential,” says Jon Mirkin, Managing Director with Sabal. “Logical upgrades will ideally position its units and services for Phoenix seniors looking for quality living and care.” 
 
Adds Tal Seder, Managing Director with Sabal, “We are increasing our focus on investment opportunities like this one within the Assisted Living sector as dynamics including limited new supply, occupancy surpassing pre-COVID levels, and the aging Baby Boomer cohort are all converging and driving demand for quality senior housing.” 
 
Sabal is a fully integrated real estate investment manager serving institutional investors across the U.S. Sabal is headquartered in Irvine, California. A fully-integrated firm, Sabal identifies, underwrites, structures and closes commercial real estate investment opportunities throughout the capital stack. The firm currently manages over $1.4 billion in assets. Visit www.sabalinvestmentholdings.com. 
 
12 North is a premier senior housing investment firm dedicated to creating high-quality, safe, comfortable, and supportive communities for aging populations. With the ability to invest across the acuity spectrum from active adult through and including Assisted Living / Memory Care communities, 12 North leverages its extensive expertise and longstanding relationships to deliver superior returns for investors while prioritizing the well-being of residents. Visit www.12-north.com. 
 
An integrated developer, owner, and operator of premier retirement communities, MorningStar's portfolio encompasses over 40 properties under operation or development representing 5,000+ units under management or in development in 11 states in the Midwest and Western United States. Offering Independent Living, Assisted Living and Memory Care, MorningStar is privileged to elevate life for those who taught the rest of us how to live. For more information, visit MorningStarSeniorLiving.com.

CBRE was the #1 Fannie Mae Senior Housing Lender in 2019 and 2016. From 2014 through 2023, CBRE originated over $12.0 billion in senior housing debt across 509 assets. CBRE completed over $21.5 billion in combined senior housing investment sales and loan originations from 2014 through 2023.

• #1 Fannie Mae Senior Housing Lender in 2019 and 2016
• #2 Senior Housing Freddie Mac Lender in 2021
• $12.0 Billion in senior housing debt originations in 2014 through 2023 across 509 assets
• #1 Senior Housing Intermediary in 2017
• Top 3 Senior Housing Lender 2010-2021*
• #2 Senior Housing Freddie Mac Lender in 2021
• #1 Agency originator in the nation in 2021: Over $14.0 billion in originations
• #1 Freddie Mac Lender in 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020
• #2 Fannie Mae Lender in 2020 and 2021
• $21.5 Billion in combined senior housing investment sales & debt originations from 2014 through 2023

*Fannie Mae, Freddie Mac, HUD FHA, Mezzanine & Construction Debt Placement