$78M Loan Recaps Four-Asset Senior Living Pool

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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.