Calson Management and RSF Partners launch programmatic joint venture for seniors housing development

SAN FRANCISCO, March 21, 2022 – JLL Capital Markets announced today that it has arranged $31.5 million in construction financing and a joint venture equity partnership for the development of Bascom Senior Living, an 83-unit, 93-bed private pay assisted living and memory care community in San Jose, California.

JLL worked on behalf of the borrower, Calson Management, to arrange an equity partnership with RSF Partners. In conjunction with the closing of the joint venture equity arrangement for Bascom Senior Living, JLL secured a four-year, floating-rate $31.5 million construction loan with a bank.

“We at Calson are beyond excited to partner with RSF and officially break ground on our first project together in what will be a long and harmonious relationship,” Jason Reyes of Calson Management. “This capital support will help us grow exponentially quicker and more efficiently as we expand our ownership and operating portfolio across California.”

Once completed, the community will offer studio, one- and two-bedroom units featuring a 24-hour emergency response system, private baths with seated showers, closet space and individual air controls. Future residents will enjoy a variety of on-site community amenities, including designated dining rooms, a hobby room, a spa/salon, a movie theater, laundry facilities, a fitness center, a wine club, a wellness center and patios/balconies.

The community will be positioned on 1.2 acres at 2375-2395 S Bascom Ave., in Campbell, an affluent residential neighborhood in San Jose. The development site offers easy access to Highway 17 and will have two adjacent handicap-accessible bus stops connecting future residents with the greater San Jose area, as well as nearby retail and entertainment centers. In addition, Bascom Senior Living will be within an eight-minute drive of Good Samaritan Hospital, El Camino Hospital Los Gatos and Kaiser Permanent Campbell Medical Offices.

The greater region has seen a significant amount of commercial activity in recent years; however, the development of senior housing product has lagged demand. San Jose has been a top market in terms of occupancy in recent years and as of Q4 2021 is the major market with the highest occupancy in the U.S., according to the National Investment Center for Seniors Housing & Care (“NIC”).

The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Director Bercut Smith and Directors Alanna Ellis and Lillian Roos.

“We greatly appreciate Jason Reyes and the Calson Management team entrusting us to capitalize their development pipeline,” said Smith. “The interest we had in the opportunity was a testament to the excellent job Calson Management has done building a Bay Area senior housing portfolio over the past 10 years and a well-positioned development pipeline, which we were able to showcase during our marketing processes.”

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 and sales 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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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.