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McLEAN, VA-Arcapita Inc., an Atlanta-based firm formerly called Crescent Capital Investments Inc., has sold its 80% interest in a 16-asset portfolio in 12 states to Sunrise Senior Living REIT of Canada. Its US REIT, Sunrise Senior Living Investments Inc., remains the 20% stakeholder through a subsidiary.
In structuring the transaction, the Canadian REIT has set up its US subsidiary, SZR US Investments Inc., as the official majority owner. The portfolio consists of 327 independent-living units, 789 assisted-living units, and 279 Alzheimers units.
The deal closed with a $221.5-million loan from Newark-based Prudential Mortgage Capital Co. The loan, which equates to 65% of cost, has a 10-year term that amortizes over a 25-year period. All properties are cross-collateralized and cross-defaulted, but the Prudential terms allow release and substitution rights.
Prudential also originated a second loan for Sunrise Senior Living. The $12-million vehicle refinances Sunrise of Severna Park, a 137-unit senior living facility in Severna Park, MD. The loan has a seven-year term and amortizes over 25 years.
The loans' originator, Thomas Goodsite, a principal in Prudential Mortgage Capital's Atlanta office, tells GlobeSt.com that the lender earlier this year made the decision to place a heavier emphasis on the senior-lending environment. "We have done a little north of $530 million this year in senior housing," he says. "That is a significant increase from what we did, year to date, last year."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
