Developer receives $25 million loan to build 117-unit senior living center in Fayetteville

IPA Capital Markets, a division of Calabasas, Calif.-based real estate investment firm Marcus & Millichap, has secured a $25.52 million loan for the construction of a 117-unit senior living complex in Fayetteville, according to an IPA news release.

Chesterfield, Mo.-based Meadowview Senior Living is the developer of Meadowview of Fayetteville. The three-story development at 616 N. Rupple Road will comprise 60 independent living apartments and 57 assisted living apartments. Amenities include a fireplace lobby, a beauty and barber shop, a fitness and yoga studio, a theater and two spas.

Plans show the 100,600-square-foot development will have an average of 136 residents, between 80 and 90 staff, and 88 parking spaces, including a parking garage with 28 spaces. The designers are Minneapolis-based Trossen Wright Plutowski (TWP) Architects and Engineering Services Inc. in Springdale.

The developer’s website shows it has seven assisted living and senior communities in Iowa and Minnesota. Its CEO is Michael Osterhoff.

In December, a limited liability company led by Osterhoff acquired 6.6 acres south of Wedington Drive and east of Rupple Road for $1.9 million. The seller was Airways South LLC, led by chairman Dale Caudle.

Frank Montalto, managing director in IPA Capital Markets’ Chicago office, secured the construction loan financing with an area bank on behalf of the developer. According to county records, the lender is The Bank of Fayetteville, a division of Stuttgart-based The Farmers & Merchants Bank.

“Senior housing has been a challenged asset class since the pandemic,” Montalto said. “By leveraging our deep relationships with the regional banking community, we were able to secure 70% leverage, something unique and advantageous for this project.”

The construction loan has a five-year term and a 70% loan-to-cost at a secured overnight financing rate of 3.10%. The rate measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral, according to the Federal Reserve Bank of New York.

IPA Capital Markets provides major private and institutional clients with commercial real estate financing services, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. Parent company Marcus & Millichap is led by President and CEO Hessam Nadji and is traded on the New York Stock Exchange (NYSE: MMI). The firm has more than 1,700 agents and over 80 offices throughout the United States and Canada.