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McLEAN, VA-Prudential Mortgage Capital Co. has provided $78 million in debt to recapitalize a senior living investment JV in which a new equity partner bought out the ownership share of the original equity investor. The new joint venture is between Sunrise Senior Living Investments Inc. and Heitman Value Partners II LLC. It is a 20/80 partnership that owns a pool of four senior living facilities in Boston, Highland Park, IL and Randolph, NJ. The entire portfolio consists of a total of 309 assisted living and Alzheimer's units. As is typical in most Sunrise JVs, it has the minority ownership in this arrangement.
The loan provided by Prudential has a seven-year term that amortizes over a 27.5-year period, with a three-year, interest-only term. The proceeds will be used by the new JV to finance the acquisition of the properties.
Thomas Goodsite, a principal in Prudential Mortgage Capital's Atlanta office, tells GlobeSt.com that the total value of the portfolio is roughly $120 million, divvying up $33.6 million in equity for Heitman and $8.4 million in equity for Sunrise, which developed the assets.
According to Prudential, Sunrise at Randolph has 51 assisted living units and 25 Alzheimer's units. Sunrise of Park has 56 assisted living units and 19 Alzheimer's; Sunrise of Burlington in Boston; 64 assisted living units, 15 Alzheimer's; Sunrise of Lynnfield in Boston, 64 assisted living units and 15 Alzheimer's.Sunrise declined to comment on the transaction.
Sunrise has a long standing relationship with various business lines of Prudential Financial Inc. Besides Prudential Mortgage Capital, which is its commercial mortgage lending business Sunrise Senior Living Inc. and Parsippany, NJ-based Prudential Real Estate Investors have, among other initiatives, joint ventured, to fund development in the European market as reported by GlobeSt.com.
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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.
