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NGKF Capital Markets has arranged and structured $37.2 million in construction financing and preferred equity for The Ackerly at Timberland, a 147-unit senior housing currently under development in the Beaverton neighborhood of Portland, Oregon.
BBVA Compass provided a $27.5 million construction loan and an institutional investor provided $10 million of preferred equity, the proceeds of which Rembold will use to develop The Ackerly. NGKF Capital Markets Senior Managing Director Jordan Roeschlaub and Managing Director Daniel Fromm arranged and structured the financing, serving as exclusive advisor to borrower Rembold Companies. The project will total 162,000 square feet and include 147 units for independent living, assisted living and memory care. There will also be separate parking areas, a generous courtyard and a porte-cochere entry area.
“Rembold’s expertise and proven track record developing senior living facilities allowed us to structure a favorable deal for our client,” said Mr. Fromm. “The Ackerly at Timberland will be the perfect complement to the borrower’s other senior housing properties in Portland, a city in which more than 10 percent of the population is over the age of 65.”
Among Rembold’s local properties are the 154-unit Russellville Park East independent living apartments and the 140-unit Russellville Park West independent living, assisted living and memory care apartments. Both properties are located in Portland.
In Q1 2015, more than $3 billion in senior housing and nursing care facilities transacted in the United States, according to the National Investment Center for Seniors Housing & Care (NIC). Overall, the average occupancy rate for senior housing was 90.2 percent, slightly lower that the Q4 2014 peak. However, the NIC reported that majority independent living properties had a stable occupancy of 91.2 percent-the same as Q4 2014 and the best showing since late 2007. Rent growth also accelerated to 2.7 percent, the fastest rate since 2009.
Mr. Fromm added, “There will continue to be financing for strong developers and operators of senior housing facilities and we look forward to working with clients across the country capitalize their projects.”
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
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