The financing is for Peninsula Pointe. When completed, the project will have 87 assisted living and memory care units in Rolling Hills Estates.
It will be a three-story, 65,000-square-foot senior housing community operated by
Phoenix-based Cadence Living.
The project is the redevelopment of a vacant office building.
The loan was provided by an unnamed large regional bank.
Cushman & Wakefield Inc.’s Richard Swartz, Jay Wagner, Aaron Rosenzweig, Tim Hosmer and Bailey Nygard arranged the financing.
Senior housing occupancy has remained flat in the second quarter at nearly 79%, according to data from the National Investment Center for Senior Housing & Care.
The group found that despite Covid-19 cases declining in senior living properties, occupancy has not risen, largely due to new inventory coming online.
The number of units leased on a net basis was positive for the first time since the first quarter of 2020. It was the most positive absorption seen since 2019.
“Second-quarter data confirm anecdotes that occupancy at many properties improved as move-ins accelerated thanks to limited property-level Covid-19 infections,” Beth Burnham Mace, NIC’s chief economist, said in a statement. “However, inventory grew and outpaced demand, and that’s why we aren’t seeing an occupancy uptick.”
Experts agree that as the population ages, there will be continued demand for senior living properties.
Developers and owners are looking to meet the demand with plans for additional senior living communities in Los Angeles.
