United Group Wins $20M Financing for Seniors Properties
- Sep 24, 2010
Dees Stribling, Contributing Editor
Albany, N.Y.–The United Group of Cos. has obtained senior loan financing totaling $20.2 million for two independent living seniors housing properties, the Lodge at Bridgemill in Canton, Ga., and Colonial Square, in Utica, N.Y. The financing was provided by PCCP L.L.C., a real estate finance specialist with more than $6 billion under management.
The Lodge at Bridgemill is a 150-unit property built in 2007 about 35 miles north of Atlanta, while Colonial Square has 144 units and dates from 2008. The assets are “maintenance-free” rental properties for adults 55 years and older, and each includes a clubhouse and other amenities such as a fitness center, pool, game room, media center and meeting space.
“We have a history of lending within the multifamily sector, especially on assets that are distressed and in need of individualized attention from both a financing and management perspective,” Adam Zoger, a principal at the San Francisco office of PCCP, tells MHN. These particular investments offered the opportunity to provide first mortgage financing on two newly built independent living facilities at a significant discount to replacement cost.
Though now is a good time to invest in multifamily properties, Zogar says that it isn’t a game for novices. “Our experience through many real estate cycles helps us accurately underwrite the risks and opportunities in the multifamily space, especially as recovery starts to occur,” he notes, adding the local market knowledge is still indispensable.
“It’s critical to understand the dynamics of individual markets and how each deal will succeed in that market,” he says. “Choosing experienced owners with proven track records in a specific region is important for a successful strategy.” The United Group has extensive experience not only in seniors housing development, but also student housing, standard multifamily and other commercial properties.
The multifamily sector has offered promising returns for assets in hotspots across the United States, Zoger continues. “Senior living in particular is a subsector we like as demand for well-maintained, well-managed facilities is strong and the target demographic continues to grow in number,” he explains.