NEW YORK CITY-A subsidiary of Manhattan-based Newcastle Investment Corp. has purchased eight senior housing assets from Portland, OR-based BPM Senior Living, according to a statement from mortgage lender Oak Grove Capital, which originated an $88.4 million Fannie Mae DUS credit facility to finance the acquisition. The line of credit consists of a fixed-rate loan and a variable-rate loan that matures in seven years.

The purchase price, totaling $143 million plus related expenses, was funded by a $55 million equity investment from the borrowers as well as the Fannie Mae funds. “This was a very complicated transaction,” says Bill Kauffman, managing director of seniors housing at Oak Grove Capital, “but Oak Grove and Fannie Mae worked through the complexity and the borrower received excellent terms in a flexible structure.” 

The assets are located across California, Oregon, Utah, Arizona and Idaho, however, a spokesperson for both Newcastle and Oak Grove did not return a phone call to GlobeSt.com confirming the addresses of the assets in-time for deadline.

In a statement, Brian Sigman, CFO of Newcastle, commented: “We value our relationship with Fannie Mae and Oak Grove, and their execution on this transaction was a great demonstration of why they are such great partners in our seniors housing business.”

The announcement comes shortly after Newcastle issued 25,300,000 shares of its common stock in a public offering at a price, net of underwriting discounts and commissions, to the underwriters of $6.63 per share for net proceeds of approximately $167.4 million, according to SEC filings. Approximately 4.4 million shares of Newcastle’s common stock were held by Fortress, through its affiliates, and its principals at June 30, 2012. In addition, Fortress, through its affiliates, held options to purchase approximately 8.5 million shares of Newcastle’s common stock at June 30, 2012.