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REAL ESTATE MERCHANT BANKING
LOS ANGELES/TUCSON, Calif.—Jan. 10, 2017— Dekel Capital, a Los Angeles-based real estate merchant bank that specializes in sourcing and placing equity and debt for active middle market commercial real estate developers and investors, has placed $25 million in financing for the construction and development of Sage Tucson, an assisted living and memory care development located in the Northwest Tucson Casas Adobes submarket.
The deal was capitalized with a $17 million construction loan arranged through Dekel Capital’s advisory practice and $8.4 million JV-Equity funded by the firm’s proprietary equity fund, Dekel Strategic Investors (DSI). Construction on the 106-unit, Class A senior housing development, located at W Orange Grove Road and broke ground in late 2016, construction to last 18 months.
“Sage Tucson presents a first-rate opportunity for investment due to the exceptionally strong rental market in Tucson, the superior location and the remarkable demographics.” Said Shlomi Ronen, managing principal and founder of Dekel Capital.
The Sage Tucson assisted living and memory care facility will contain a total of 106 units consisting of 86 assisted living units and 20 memory care units. The project will feature a 2-story structure with a fitness center, community room, craft room, beauty salon, recreational lounge, theater, therapy room and outdoor courtyards on a 9.55-acre site.
Sage Tucson has street frontage on West Orange Grove Road, which is an east/west artery that connects to the I-10 Freeway and State Route 77 and has a daily visibility of 23,000 cars. The facility is also located within two blocks of the Northwest Medical Center and in close proximity to the Foothills Mall, located 2 miles from the property, which includes a roster of national rental tenants.
Sage Tucson was DSI’s 3rd JV-equity investment with development partner, Willis Development, and their first senior housing investment in Arizona. DSI and Willis Development previously partners on two senior housing developments in California: Kingston Bay in Fresno, which is currently in lease up, and Sage Mountain in Thousand Oaks which broke ground Mid-2016.
DSI, a division of Dekel Capital, provides equity capital to real estate developers engaging in multifamily, senior housing, student housing and retail development projects. To date, DSI has invested over $100M across 11 deals and is actively looking for more investment opportunities.
About Willis Development:
Willis Development was founded by Wayne Naphtal with the intent to develop senior living properties. Mr. Naphtal has over thirty years of accomplished real estate development experience from acquisition to project disposition. Prior to forming Willis Development, Mr. Naphtal founded First Family Homes and led the full cycle of development from entitlement to disposition for multi-family residential properties in excess of $500 million. In addition to Sage Tucson, Mr. Naphtal has recently completed a 120 bed Assisted Living + Memory Care facility in Fresno, CA and is under construction on a 130 bed Assisted Living + Memory Care facility in Thousand Oaks, CA.