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BETHESDA, MD-Green Park Financial has closed a $460-million credit facility consisting of both fixed and floating rate debt to recapitalize a 19-asset, 1,988-bed senior housing portfolio. The portfolio owners, a joint venture managed by Wellesley Hills, MA-based Benchmark Assisted Living, LLC, will use the proceeds to renovate some of the independent and assisted living facilities, pay off the original investors in the transaction and eventually bring in additional assets to the portfolio, Russ Ming, assistant vice president at Green Park tells GlobeSt.com.
The 1,499,299-sf portfolio has assets located in Brookfield, South Windsor, Waterbury, Meriden, East Haven, Middletown, Avon, Hamden, Milford, Trumbull, Woodbridge and Rocky Hill, CT; Providence and Warwick, RI; Mansfield, Agawam, North Chelmsford, Quincy and Danvers, MA.
The transaction, which closed less than 60 days ago, allowed Benchmark to replace its short term, three-to-five-year financing with a 10-year credit facility, Ming explains. "The company had brought in a new JV partner and it wanted to recapitalize with long term debt." Ming wouldn't reveal pricing, but the firm did say that the facility was underwritten between 65% to 75% loan-to-value ratio.
Last October, Benchmark completed the first phase of a $148-million recapitalization of an 11-property portfolio totaling 756 units in Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont. AEW Capital Management, investing on behalf of AEW Partners II, was the original investor in this portfolio, which was formed as a joint venture between the two firms in 1997.
A multifamily lender, Green Park is increasing its focus on the senior living space, after the sector's cash a few years ago. "We are visiting old clients and redoubling our efforts on this space," Ming says.
He says for the last year senior lending has been a growing part of the company's portfolio, reaching 30% in 2006, a 20% increase from the previous year. In 2007, he says, he expects to meet or possibly exceed this level. "Generally we target about $200 million in senior housing loans."
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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.
