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Acore forecloses on CA Ventures senior living in Tanglewood
Chicago-based developer defaulted on $72 million loan earlier this year
From left: Acore Capital CEO Warren De Haan and CA Ventures CEO Tom Scott along with Anthology of Tanglewood at 504 Bering Drive in Houston (Getty, Acore Capital, CA Ventures, LinkedIn/Warren De Haan, Google Maps)
CA Ventures’ problems have migrated to the Texas Triangle.
The company defaulted on a $72.1 million loan on one of its senior living facilities, Anthology of Tanglewood, at 504 Bering Drive in Houston. The property was auctioned at foreclosure earlier this month, according to Roddy’s Foreclosure Listing Service. An entity of the lender, Acore Capital, won control.
The highrise spans 197,000 square feet and includes 230 units. It was built in 2016. The building’s assessed value stands at $88.8 million according to PropertyShark, although assessed values often lag behind a property’s actual market value in Texas. Tanglewood is an upscale neighborhood, and Anthology of Tanglewood’s rates start at $3,800, according to its website.
Acore, based in Larkspur, California, has made other moves to profit off distress recently. In October, the firm bought a $70 million office complex at foreclosure auction in Orange County, California. As one of the largest non-bank commercial real estate lenders in the country, it has stepped up its senior lending in recent years as banks have scaled back their commercial real estate lending.
Acore’s senior loans carry rates between 8.5 percent and 11 percent, CEO Warren De Haan told CNBC last year. “There isn’t enough capital available at the appropriate price, which leads to opportunity for the non-banking sector” he said.
CA Ventures, meanwhile, has no shortage of other headaches. CEO Tom Scott said in December that the Chicago-based developer is in “deleverage mode.” It is selling off multifamily assets and facing lawsuits from a lender, a group of investors and even a former executive. The company has attributed many of its problems to market-wide conditions.
“It’s been a tumultuous two years,” Scott said in the same interview. “It’s tough on everybody in the real estate world, everybody.”
Neither firm returned requests for comment on this specific deal. Late last year, the owner of Frontier Senior Living fell behind on loan payments for three Houston senior living facilities. Nationwide, rent growth on senior housing assets fell slightly in 2023 but still outpaced that of multifamily, according to JLL.