US: Tricon Capital Group has established a joint venture with Lakemont Homes to develop a 289-unit for seniors at Eskaton Village, Roseville, California.
These “homes in the community” will range from around $350,000 to $450,000.
It will be developed adjacent to a 192-unit seniors’ care facility developed by Eskaton Senior Residences and Services.
Tricon views the development as something between a traditional active adult community and a senior care facility. Vice president David Van said: "We think this project represents a good midpoint for seniors who might need some care but don’t need a full-care facility right away."
The homeowners can access the healthcare facilities and services in the adjacent care facility. This would include a meals service and recreational and social programmes.
There is a total equity requirement for the project of $20.5 million. Tricon provided $18.5 million. The balance came from Lakemont Homes.
Tricon figures it will achieve an internal rate of return of between 20 and 25%. This factors in a four- to five-year holding period.
Tricon anticipates that its project will attract some residents from Del Webb’s Sun City Roseville project. This is home to active adults only and has no support facilities. It is located two miles from Eskaton Village, Roseville.
Tricon made the investment in the project on behalf of its commingled fund Tricon Capital VII. The real estate manager raised $330 million of equity for this fund last year. Its investors included the likes of Ohio Public Employees Retirement System and Ohio Police & Fire Pension Fund.
Tricon looks to invest equity or mezzanine debt in single-family and condominium projects around the country.
Tricon and Lakemont Homes aim to joint venture on more projects in the future. One of these will be a 113-unit, single-family development in Placerville, California. The land is being acquired at the moment.