Posted in Senior Care Investor | Benn Swett
Zenith Capital is expanding its investment in the Seattle-area yet again, with a $23.5 million assisted living/memory care project in Covington, Washington. The company, which specializes in providing alternative financing for the senior housing industry, is partnering with Seniority, Inc., a wholly-owned subsidiary of ABHOW, which is itself currently affiliated with the be.group. The community’s 98 units will include 64 for assisted living and 34 for memory care. At a cost of $23.5 million, or $239,800 per unit, the project pretty much equals the average cost to build like-facilities in the region (at $238,600 per unit), which is pricier compared to the rest of the country. Having closed on the land at the end of the August for $1 million, Zenith plans to finance the development similar to its other projects, with 10% owner’s equity, 40% EB5 funding and 50% debt. The company plans on breaking ground in the second quarter of 2016, and it should open in summer 2017. Sticking to that typical capital stack, Zenith also expects to roll out several new projects in Texas, Oklahoma and several Midwestern states and other West Coast locations. The company is currently in advanced discussions with operators for those projects and is looking for operator/developer partners for additional deals as well.