JLL Capital Markets Secures $19M Refi for Senior Housing Community

JLL Capital Markets has secured an $18.7 million refinancing loan for Elk River Senior Living, a 108-unit senior housing community in Elk Grove, Minn. Amounting to $173,151 per unit, the refinancing was facilitated through the HUD/FHA 232/223(f) program.

The financing consolidated five different debt obligations associated with the construction of the Elk River project. Managing Director Jeff Lepley and Associate Alex Sheaffer led the JLL Capital Markets Debt Advisory team that secured the loan.

Elk River Senior Living includes independent living, assisted living and memory care services. The community incorporates studios, one- and two-bedroom floorplans ranging between 410 and 992 square feet. Common-area amenities include a fitness center, a club room, a movie theater, lounges, a hair salon, a library, dining areas and outdoor courtyards.

Elk River Senior Living features services such as medication management, 24/7 staff, wellness checks, housekeeping, personal care and help with daily activities, laundry services and chef-prepared meals.

Located at 11124 183rd Circle NW, Elk River Senior Living is within walking distance of several dining options, retail centers and green areas such as Hillside Park. The community is near Route 169, which provides direct access to downtown Minneapolis.

Securing favorable financing amid limited lending activity represents one of the biggest challenges for senior housing developers and investors today. Despite an elongated underwriting and closing process, HUD loans can fill this gap in demand. Unlike Fannie Mae and Freddie Mac, HUD provides higher leverage options in terms of financing and a self-amortizing 35-year term, which caters to the needs of senior housing owners, operators and occasionally developers.