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Zenith Capital
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Seattle, WA, April 17, 2017 – The United States Citizenship and Immigration Services (“USCIS”) has begun to issue I-526 Petition approval for EB-5 investors who invested in The Grange at Linden – a senior housing project developed by Zenith Capital in Seattle, Washington.

In early April, five I-526 petitions submitted in Q3 2015 received approval from USCIS. The I-526 Petition approval marks the first step in the process for immigrant investors seeking to become permanent residents of the United States. The approval confirms the project structure and job-calculation methodology used in the Grange at Linden have met the U.S. Government’s requirements.

David Bovée, Zenith Capital’s Managing Principal, shares “We are pleased to demonstrate USCIS approval for this senior living project, an industry which offers EB-5 investors a clear path to successful immigration through both direct and indirect job creation.”

Zenith Capital began the project 2015 with an estimated total cost of $32 million. As the financial advisor, Zenith secured the financing through a combination of private owner equity, EB-5 equity, and a HUD (“the Department of Housing and Urban Development”) construction loan through CBRE.

In December of 2016, the City of Seattle Design Review Board approved the design of The Grange. The facility, operated by Village Concepts, will provide the community with needed memory care support and assisted living services for over 100 residents. The Grange will create over 288 jobs in the local community thanks to the EB-5 investors.

About Village Concepts:
Village Concepts has been providing management service to senior communities since 1975. Drawing upon more than 40 years of experience and three generations of a proud family tradition, Village concept continues to provide a personalized touch to more than 1,200 residents in 16 senior communities located near metropolitan centers throughout Puget Sound and Central Washington.

About Zenith Capital:
Seattle-based Zenith Capital is real estate investment group specializing in delivering comprehensive finance, development and advisory services. Over the past 15 years, the group placed over $1.7 billion in financing in over 200 commercial projects, including nearly 50 seniors housing projects.
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Zenith Capital Announces Change of Address

ZENITH CAPITAL·MONDAY, FEBRUARY 27, 2017

Seattle, WA – Zenith Capital, a commercial real estate investment group, specializing in delivering comprehensive finance, development, and advisory services to the seniors housing industry, announced today the opening of their new office in Seattle, Washington.

The address of the new location is 2101 4th Avenue, Suite 1650, Seattle, WA 98121. For locals, the 4th and Blanchard Building is well-known with its oblique, glass curtain wall design – Zenith’s office is in the south tower with views of downtown Seattle, Lake Union, and Elliott Bay. All other contact information including phone numbers will remain the same.

“As Zenith Capital continues to grow, we are excited about the productivity and efficiencies we will garner in our new office – featuring a conference room with seating for 25 persons, which we plan to use for weekly investor meetings showcasing the opportunities in seniors housing!” said David Bovée, Managing Principal. “The new office allows us to better service the needs of our clients and employees, and reflects our long-term commitment to the Pacific Northwest.”

About Zenith Capital

The Zenith Capital team has collectively placed over $1.7 billion in financing in a variety of commercial projects, including funding for nearly 50 seniors housing communities. In fact, Zenith Capital earned its reputation by providing compelling capital solutions and advisory services for seniors housing operators and developers.

Whether you are seeking Debt, Equity, M&A Advisory, or are in need of Development Services for your next project, our entire team is here to serve.

Contact Us

206-400-7607
info@Zenith.Capital
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Federal Reserve Chairwoman, Janet Yellen, stated in her semiannual report to the Senate on Tuesday that, “Waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession."

"At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate," said Yellen.

What can borrowers expect when asking for commercial financing?

The appetite for construction lending should continue to curtail as lenders become more conservative in their terms. Lenders now require borrowers to have increased equity in their deals and to provide additional liquidity and funds in the event of a hiccup.

With a tightening in the credit market, getting approved for a construction loan will come down to the quality of the development, the experience of the key principals, and the caliber of the proposal sent to lending institutions. Lenders are fond of proposals that not only feature a great project, but also factor in enough profit cushion to absorb any cost overruns.

Financing Requests Must Resonate with Lenders

Understanding what a lender is looking for before submitting a financing request is paramount to securing capital. With nearly 50 senior communities financed, Zenith Capital has the broad experience in evaluating seniors housing developments and ensuring that loan proposals resonate with current market conditions and align with lender’s expectations.

The level of commercial activity over the past five years has been robust, but there is a pull back from lenders as the credit markets contract. David Bovée, Managing Principal for Zenith Capital, expresses, “We used to talk to five construction lenders and receive three offers. Now we experience talking to 30 lenders in order to receive a single commitment for a new construction loan.”

The Right Proposal, The Right Team

As banks become more conservative, having the right proposal can make the difference in approving a financing request. Since 2003, our team placed over $1.7 billion in financing and perfected the art of making lenders fight for the opportunity to fund a loan.

If you are seeking debt, equity, or M&A advisory, I invite you to discover how Zenith Capital can get your next project funded. To contact our finance team, call Jeff DeMonbrun, Senior Vice President, at 206-456-4213 or email him directly at Jeff@Zenith.Capital.

To learn more about our group, visit our website at www.Zenith.Capital
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Industrial Development Bond Financing

Manufacturers can take advantage of a little-known financing program set up by the Federal government called Industrial Revenue Bond (“IRB”) financing. Capital projects up to $20 million are eligible for this interest rate subsidy program. Companies constructing or acquiring production facilities or new manufacturing equipment should carefully review their financing options, including this attractive low-interest rate funding alternative.

IRB’s enjoy low rates because tax-exempt bonds fund the qualified projects. IRB’s result in significant interest savings – often 20% to 30% or more - when compared to conventional financing options. Typical borrowers are currently paying an all-in variable interest rate of under 2.5%. These rates include interest paid to bondholders and an estimate of all other annual ancillary fees. Additionally, we can refinance current debt at low rates by using taxable bonds.

IRB Program Highlights

•Amortization up to 20 to 25 years on land and buildings, 7 to 10 years on equipment
•Ample bond issuing capacity for projects
•IRBs can receive approvals monthly
•Access to bond financing not limited to specific areas or communities

Qualifications

To be eligible for IRB financing, the borrow must be financially strong and able to access conventional financing options. Furthermore the project must meet the following criterion: the project must be within a specified industry and the capital must be used for specific purposes.

Industry Type Project Eligibility
Manufacturers Purchase land & construct a building
Processor Purchase an existing building
Recyclers Expand an existing facility

To be eligible for IRB financing, the borrow must be financially strong and able to access conventional financing options. Furthermore, the project must meet the following criterion: the project must be within a specified industry and the capital must be used for specific purposes.

Learn More

A nationally recognized IRB expert, Jeff DeMonbrun has helped over 100 companies access over $1 billion in financing across the nation. To discover if IRB financing can be used for your next project, contact Jeff DeMonbrun, Senior Vice President, Zenith Capital at 206-456-4213 or Jeff@Zenith.Capital.

Zenith Capital is real estate investment group specializing in delivering comprehensive finance, development and advisory services for commercial real estate. With over $1.7 billion in financing placed, our team of in-house analysts and underwriters are dedicated to the art of making lenders fight for the opportunity to fund your loan.
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Is Now the Right Time to Sell My Seniors Housing Portfolio?

Over that past several years the market has enjoyed extremely low-interest rates. Capitalization rates hit record lows for assisted living properties, and a seniors housing continues to outperform other asset classes with returns at 17.0% for a five-year period, according to the NCREIF Property Index (NPI).

There is no doubt that the seniors housing industry has enjoyed the fruits of the economic recovery, but with the high likelihood that interest rates will continue to increase, what impact will rising interest rates have on valuations as owners decide to sell their community?

Federal Reserve speculators are predicting an increase in commercial rates in the coming months. How much, no on can say for certain, but whispers indicate that the market will see at least three separate quarter-point hikes in 2017. Higher interest rates have the potential to push cap rates up and valuations down. Current cap rates in the seniors housing market are around 7.5% or 500 basis points above the 10-year Treasury rate. This spread is the risk premium that investors are willing to place on an assisted living investment versus the “risk-free” U.S. Treasury Bond.

To determine the valuation of a seniors housing community, one needs to divide the Net Operating Income (NOI) by the Cap rate. Assuming the risk premium of 500 bps remains, what effect will rising cap rates have on the valuation of an 110-unit seniors housing community with an NOI of $3.0 million?
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Interest Rates are on the Rise, are you Prepared

Interest rates are near historic lows, and financial advisors agree that they can’t stay low forever. Federal Reserve speculators are predicting an increase in commercial real estate rates in the coming months. How much, no one can say for certain, but the crystal ball looking into the Fed’s monetary policy has signaled that the market will see at least three quarter-point rate hikes in 2017.

Furthermore, on Monday, Boston Fed President, Eric Rosengren called for the U.S. Central bank to increase its pace of interest rate increases. “I expect that appropriate monetary policy will need to normalize more quickly than over the past year,” Rosengren told the Connecticut Business and Industry Association.

The Time to Act is Now

If you are debating whether or not to purchase commercial real estate or refinance properties in your existing portfolio – now is the time to act. With over $1.7 billion in financing placed, our team of in-house analysts and underwriters are dedicated to the art of making lenders fight for the opportunity to fund your loan.

Zenith Capital's focus is your long-term success. Whether you are seeking Debt or Equity, M&A Advisory, or you are in need of Commercial Real Estate Development for your project, our entire team is here to serve you.

To learn more about Zenith Capital, visit www.Zenith.Capital or contact our team directly at 206-400-7607 | info@Zenith.Capital.

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EB-5 program set for short-term reauthorization in Congressional spending bill

Seattle, WA – House Appropriations Chairman Hal Rodgers introduced a short-term Continuing Resolution (H.R. 2028) to prevent a government shutdown and continues funding for federal programs until April 28, 2017. Full text of the legislation at http://docs.house.gov/floor/

Chairman Rodgers stated, "This Continuing Resolution is the necessary step for an operating and functioning government over the next four months."

The Continuing Resolution is expected to be passed today. Included in the Continuing Resolution (CR) is a short-term reauthorization of the EB-5 Regional Center Program. The clean reauthorization extends the current EB-5 program as it is through the end of the of the funding period. Stakeholders and investors can remain confident that the EB-5 Regional Center Program will continue to operate under the current policy rules which allows foreign nationals to make $0.5-$1.0 million investments into job-creating companies in the U.S.

The EB-5 program attracts billions in investments and creates tens of thousands of jobs each year. According to IIUSA, an EB-5 trade association, the program has attracted over $15.4 billion of foreign direct investment into the U.S. economy since 2008 and supported over 29,000 jobs during the fiscal year 2010-2013.

To learn more about the EB-5 program and how to access the capital for your project, contact our team at info@Zenith.Capital
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Zenith Capital joins senior housing leaders in panel discussions on future trends in seniors housing and long term care.
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