Through the combined backing of real estate investment trust Welltower, PNC Bank and Ortera Capital, Related California has secured $690 million in construction financing to jump start its development projects in Santa Clara, CA, which will include a new location of the luxury senior living brand Coterie.
“These transactions represent Related’s larger commitment to delivering much-needed housing in the heart of Silicon Valley,” Nick Vanderboom, partner of Related Santa Clara, said in a statement.
Toledo, OH-based Wellower is financing $200 million for the Coterie community. PNC Bank, based in Pittsburgh, provided $130 million in financing for the development of 191 luxury senior residences. Montreal-based Otera Capital provided a $360 million loan for the development of 509 luxury residences in a 21-story building known as Tasman East.
The Coterie project is a joint venture between New York-based Related Companie and Atria Senior Living in conjunction with Welltower. The joint venture was formed in 2018 to develop, own and operate modern urban communities catering to older adults living in major metropolitan areas. Coterie Cathedral Hill, which opened in the heart of the Bay Area in March, was the first building to open under the relationship. Coterie Hudson Yards will open this fall followed by communities in Santa Clara and Cupertino, CA.
“We are pleased to collaborate once again with Related, Atria and Welltower on this important development for the Santa Clara community,” said Sam Kupchella, vice president and relationship manager for PNC Agency Finance. “With the aging population growing across the US, the development of high-quality senior housing is a critical need across the country. We’re excited to be part of financing this work.”
Related California is the master developer and owns a third of the 45-acre site, which will include 106,000 square feet of shops and restaurants, plus 10 acres of parks, the Real Deal reported.
