$35M refinancing arranged for Southern California seniors community

SAN DIEGO, Oct. 3, 2024 –  JLL Capital Markets announced today it has arranged a $35 million construction-takeout refinancing for Ocean Hills Senior Living, a 216-unit, Class A seniors housing campus in Oceanside, California.

Working on behalf of Protea Capital Partners, JLL placed the five-year, fixed-rate loan with a regional bank.

Located at 4500 Cannon Rd, Ocean Hills Senior Living sits on a hilltop just 3.5 miles from the Pacific Ocean, at the north end of San Diego County. The property's strategic location provides exceptional surrounding demographics and easy access across the region via major freeways, including SR-78 and I-5.

Ocean Hills Senior Living is a resort-style complex offering a mix of independent living, assisted living and memory care units in studio, one- and two-bedroom layouts. The campus is well-positioned to serve the diverse and evolving healthcare needs of its resident base. Community amenities include a movie theatre, pickleball courts, sports bar/restaurant, convenience store, six-hole putting green, pool and spa, several activity rooms and a fitness center.

The assisted living/memory care phase of the property was delivered in 2019, with the independent living portion opening in 2021. Initially hampered by COVID, occupancy rates have steadily increased, driven by strong demographic trends and limited inventory growth. The campus reached initial stabilization in Q4 2023.

"Despite strong lender interest in the opportunity given its prime location, quality of the community and reputable sponsorship, most offers fell short of the ask," said Walsh. "The regional bank solution provided advantageous loan terms, including higher proceeds and aggressive pricing.”

“It was a real pleasure working with the JLL team. Despite having to navigate incredibly challenging circumstances, they never gave up and continued to maintain a level of professionalism that was exceptional,” said Greg Spiro of Protea Capital Partners.

The JLL Capital Markets Debt Advisory team was led by Director Olga Walsh and Analyst Jack Wood, alongside the JLL Seniors Housing team.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Protea Capital Partners, LLC is a real estate investment company that develops and owns senior living facilities. To learn more, please visit: proteacapital.com.