Senior Living Development News, January 22, 2015 - EB-5 helps SummerPlace expand into Sacramento area
January 22, 2015:
Your biweekly update on people, places, projects, plus...
EB-5 helps SummerPlace expand into Sacramento area
A joint venture between PDC Capital Group, a private equity group specializing in EB-5 investments for different areas of real estate including seniors housing, and FCM Capital Partners, a seniors housing developer, is soon starting construction on two more assisted living communities under the SummerPlace brand. Roseville, California-based FCM Capital Partners created SummerPlace Living (which is also headed by FCM CEO, Chris Miller) to develop the pipeline and brought in Salem, Oregon-based Mosaic Management to operate the communities. The development pipeline is valued over $750 million and in the next two years will fund the construction of 25 AL/MC communities, mostly in California (but also in other states like Florida, Illinois and Texas), some of which are already open. One property, in West Sacramento, California, begins construction in March and will feature 174 units with 204 beds at a cost of $27.5 million, or $158,000 per unit. Another, in Citrus Heights, California, will have 109 units of AL and MC that will cost $22.8 million, or $209,100 per unit. Project costs vary from around $20 million to $40 million at each development, and EB-5 funding will supplement some 20% to 30% of the financing for each property......................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Southwest Florida booming
REDICO, a Michigan-based real estate development and investment company, announced its next American House project, called Coconut Point, in Estero, Florida. The project is the second for REDICO in southwest Florida and will include 54 independent living units, 76 assisted living units and 64 memory care units. It’s in a prime location, as across the street is a 140-store mall, and just north of Coconut Point will be Lee Memorial Health System’s planned $140 million Estero healthcare village, which is scheduled to open in 2017. American House is based in Michigan and currently has over 40 communities open in that state, mostly in the Detroit metro area, and after it became an affiliate of REDICO in 2008, it began to look southward. Last year, it started construction on the 130-unit American House Bonita Springs, which when it opens this Spring will be the first American House community outside of Michigan (while Coconut Point will be the second). The company did not disclose the development cost of either property. The Estero area, located in between Fort Myers and Naples, seems to be on the mind of many senior care developers these days. Discovery Village broke ground in December 2013 on its Discovery Village in Naples, with 30 IL, 60 AL and 30 MC units, which will cater to a higher income bracket than American House, which aims to provide for middle income retirees, largely from the Midwest, with rents ranging from $3,000 a month for IL up to $5,490 for a one-bedroom memory care suite. There are also three other assisted living communities in Estero alone currently going through the zoning process. With a busy Sarasota market too, southwest Florida is the place to watch......................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Double duty financing
We wrote last year that Virtus Real Estate Capital and PNC Bank had partnered to provide acquisition financing for LCB Senior Living to acquire two Vermont senior living communities with a total of 297 units for $80 million, or $269,400 per unit. Virtus provided $23 million in equity and PNC provided debt for the remaining $57 million. But, in that acquisition, LCB also purchased a 2.7 acre site just outside of Burlington, Vermont. And who did they turn to finance the construction of a new 102-unit IL, AL and MC community? Why, Virtus and PNC, of course. Arranged by Cushman & Wakefield, PNC provided $18.4 million in construction financing, while Virtus supplied $8.5 million in equity. The community is scheduled to break ground early this year and will open in the Summer of 2016.......................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
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