Hunt Real Estate Capital provided a bridge loan in the amount of $7 million to finance the acquisition of a seniors housing property located in Phoenix, Arizona.
Hunt Real Estate Capital’s Brady Johnson originated the deal, with the deal team consisting of Kathryn Burton Gray, Senior Managing Director and Head of Seniors Housing & Healthcare, and Michael Jones, Vice President of Underwriting for the firm’s Debt Strategies Group.
Hawthorne Court at Ahwatukee is a 44-unit memory care facility located in the affluent Ahwatukee area of Phoenix, Arizona.
According to a recent white paper developed by Senior Housing News and Hunt Real Estate Capital, Arizona is one of the three fastest-growing U.S. aging markets. With more than 1.1 million people over the age of 65, Arizona is considered a leading retirement location. Arizona is also #2 on the SmartAsset study for net migrations by state and features five of the top 10 cities for retirees.
Built in 2000 and renovated in 2016, Hawthorn Court is situated on three acres of land in a park-like setting surrounded by large trees and mature landscaping.
The borrower is a joint venture partnership between CALCAP Real Estate Advisors, a real estate investment firm based in Pasadena, California with over $250 million in assets under management, and Greg Roderick, President and CEO of Frontier Management, a leading owner and operator of seniors housing communities. The loan term is 24-months with interest-only for the entire loan.
“We were glad to be a part of CALCAP’s foray into ownership of seniors housing assets as the firm is an experienced and successful real estate investor,” noted Brady Johnson, Director of Seniors Housing & Healthcare at Hunt Real Estate Capital. “Hawthorn Court makes a unique and strategic addition to their strong portfolio of real estate assets.”
“Hunt Real Estate Capital was pleased by the involvement of Frontier Management, one of the largest seniors housing operators in the country with communities in 12 states and a strong track record of success in the sector,” noted Kathryn Burton Gray, Head of Seniors Housing & Healthcare at Hunt Real Estate Capital. “We were pleased to partner with them on this deal as they are an experienced and well-established operator with solid plans to continue building a portfolio of strong, well-performing seniors housing communities.”
Blueprint Healthcare Real Estate Advisors represented the seller, Senior Resource Group (SRG) in the transaction, another well-respected owner and operator, currently with 32 properties under management primarily in California and Arizona.
“It was good to have played an integral part in this successful transaction for this well-regarded seller and major player in the seniors housing industry,” concluded Burton Gray.
“The Hunt Real Estate Capital team worked through the intricacies of this deal very diligently. Blueprint was very pleased with their deliberate effort in getting this deal across the finish line,” remarked Jacob Gehl, Senior Managing Director and Founding Partner of Blueprint Healthcare Real Estate Advisors.
The property is conveniently located within walking distance to the Foothills Park Place Shopping Center and is close to several hospitals and other healthcare providers. Specifically, Hawthorn Court is near the Foothills Samaritan Health Center, which has a specialized wing of the Banner Medical center focused on mental health issues including dementia.
“Hawthorne Court is located in an area where demand is strong. The natural barriers to the south and to the west, along with the I-10 freeway to the east create a high barrier to entry, primary market area for the already well-established memory care community,” noted Brady Johnson. “The senior population in Phoenix is growing, however with new supply in the market the location of seniors housing communities has become more crucial than ever.”
Hawthorne Court at Ahwatukee offers a mix of private and semi-private units. Common areas for residents include an outdoor courtyard and patio, dining room, lounge area, activity room, beauty salon and open concept sitting space. All units have private bathrooms and are well appointed.