CBRE Capital Markets professionals continue to prove that the market is open by working with owners and investors to provide creative sales and debt solutions for their clients. Below are the highlights of a recently completed loan origination:

Hacienda at The River:

Aron Will, Executive Vice President of CBRE National Senior Housing and Jim Sellers and Tim Prouty, both Senior Vice Presidents of the CBRE Debt & Structured Finance office in Tucson have arranged construction financing on behalf of a joint venture between The Freshwater Group/Watermark Retirement Communities (“TFG” or “Watermark”; developer/operator) and Kayne Anderson (institutional equity) for the construction of the Hacienda at The River (the “Property”). The Property is a to-be-built, class “A”, 129 unit/135 bed Assisted Living/Memory Care/Skilled Nursing-Post Acute facility located at the southeast corner of River Road and Hacienda Del Sol Road in Tucson, Arizona. The Property will be managed by Watermark.

The Property will consist of three to-be-built neighborhood communities situated on 5.75 acres with a total of 5 buildings. The campus will be designed with a grouping of three, one‐story assisted living/memory care cottages and a two‐story with partial basement rehab/skilled nursing building. A smaller building identified by the development team as the “stable” will be used to equine therapy bringing the development scheme to 5 total buildings. The Assisted Living/Memory Care will be fully licensed Directed Care, the highest Assisted Living licensure in Arizona which allows the community to provide the highest acuity Assisted Living services to its residents. The Assisted Living/Memory Care will be 100% private-pay while the Skilled Nursing will be private pay with a percentage of Medicare and HMO.

CBRE secured a 70% LTC, $25.025 million, 3 year floating rate construction  loan which then converts to a 3 year mini-perm  loan. The loan was placed through a regional bank.

The Freshwater Group was formed in 2005 to continue the work David Freshwater and his team had begun two decades earlier when they broke ground on their first community designed to serve older adults. In 1985, David Freshwater founded The Fountains and over the next two decades he and his team developed, owned and operated a wide range of seniors housing communities which grew into one of the nation’s top 25 seniors housing owners and operators. Today, the company’s operations are led by David Barnes (President) and investments are led by Carl Mittendorff (Chief Investment Officer). Watermark is a TFG portfolio company that operates and manages their senior housing assets currently consisting of 38 communities across 21 states representing 7,483 beds. In 2015, Watermark was the 13th largest senior housing property manager in the country according to the American Seniors Housing Association. The acuity types of these projects include freestanding Independent Living, freestanding Independent Living/Assisted Living, freestanding Independent Living/Assisted Living/Alzheimer’s Care and CCRC’s.

Kayne Anderson Real Estate Advisors (“KAREA”) is the private equity real estate arm of Kayne Anderson Capital Advisors, L.P., a premier alternative asset manager with approximately $26 billion in AUM. Based in Boca Raton, FL, KAREA invests in niche sectors including senior housing, medical office and off-campus student housing. KAREA recently closed its fourth fund with $1.03B in commitments. As of 2015, KAREA maintains ownership in 32 private-pay, senior living communities across 9 states totaling 6,356 units of Independent Living, Assisted Living, Memory Care and Skilled Nursing and represents more than $1.5 billion in transaction value. These investments make KAREA one of the top 25 largest owners of senior housing in the United States.

CBRE completed over $2 billion in combined senior housing investment sales and loan originations in 2014. In 2014, CBRE originated over $808 million in senior housing debt across 60 assets and was Freddie Mac’s #1 Senior Housing Lender in the country. Year to date through June 2015, CBRE originated $940 million in senior housing debt across 46 assets. CBRE has been a Top 2 senior housing originator in the country from 2010 through 2014 and was the #1 Senior Housing/Age Restricted Lender in the U.S in both 2013 & 2014*.