ST. PAUL-Brookdale Senior Living, based in Brentwood, TN, has refinanced 44 seniors housing properties in 13 states for $437.8 million. Locally based Oak Grove Capital arranged the loan through a Fannie Mae credit facility.
The collateral pool consists of assisted living, independent living, memory care and skilled nursing units in states such as Florida, Texas, California and Ohio. The properties total 4,145 units.
Oak Grove arranged a seven-year facility, of which 75% is fixed rate and 25% is variable rate, used to finance existing mortgage debt. Bill Kauffman, managing director of the company’s Seniors Housing and Healthcare Group, tells GlobeSt.com that the debt was maturing in 2012. “Brookdale chose to go with lower leverage, it made the deal easier and we were able to get a very attractive interest rate,” he says.
In its recent second quarter report, the company said it has refinanced or repaid a total of$845.5 million of mortgage debt due in 2012 and 2013; replaced with $782 million of debt with a blended current rate of 3.37%.
Kauffman says that even in days of uncertainty, seniors housing properties can still get refinancing attention. “There’s been very little new construction over the past four years,” he says. “It’s true that occupancy is down a bit compared to three years ago, but there’s been enough revenue growth to offset this decline. Expenses have stayed steady, so NOI growth has been positive, and the better properties today are trading at attractive cap rates.”
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