Property Types Seniors Housing
Emeritus Nets $163M in Loans for Seniors Housing Buy
Aug 6, 2008
By: Thomas Peretti, Contributing Correspondent

KeyBank Real Estate Capital has secured $163 million in loans to finance the purchase of 19 senior housing properties nationwide. The package will finance Emeritus Senior Living’s purchase of the 19 properties, which range in individual price from $2.9 million to $14.7 million. Upon the completion of the purchases, Emeritus will serve as proprietor of the sites, which are located natonwide.

The portfolio consists of over 1,500 units in the properties, all of which are assisted living facilities, some with Alzheimer’s care. KeyBank used its long-standing relationship with Freddie Mac to close the deal on behalf of Emeritus. Freddie Mac provided the loans through its Conventional Cash Seniors Housing product. The pool of 19 cross-collateralized and cross-defaulted commercial mortgages has a 10-year term, with an optional 12-month extension at the end of the term. The initial 12 months of the loan are for interest only, and the loan has an amortization period of 30 years, with a 10 year yield maintenance period. The minimum debt service coverage was 1.38 and minimum loan-to-value ratio was 75 percent. The deal was completed within 60 days in order to comply with the required acquisition timing.

"Underwriting is tighter, and pricing is up a little, but on the whole this was a fairly straightforward deal," Dave Shillington, managing director of KeyBank Real Estate Capital's agency lending division, told CPN. "Frannie Mae and Freddie Mac are still active in seniors housing, which is helping keep the market stable."

KeyBank Real Estate Capital is a subsdiary of KeyCorp, a bank-based financial services company with assets totaling more than $97 billion. KeyBank Real Estate Capital annually finances about $20 billion in commercial real estate lending.

This transaction is KeyBank’s second with Emeritus Senior Living; as previously reported by CPN, KeyBank provided funding for Emeritus’s purchase of three facilities in June.

 
Recent Seniors Housing Headlines
Healthcare REIT Snaps Up Wellness Centers in $100M Sale-Leaseback Deal
Aug. 28, 2008
Four wellness centers operated by Life Time Fitness Inc. have come under the ownership of Senior Housing Properties Trust, courtesy of a $100 million deal. Life Time Fitness will continue to occupy the properties under a triple-net lease agreement through its subsidiary, LTF Real Estate Co.
Emeritus to Lease 11 Seniors Housing Properties from HCP
Aug. 26, 2008
Assisted living services provider Emeritus Corp. will soon bring a new group of seniors housing properties under its umbrella now that it has signed an agreement with affiliates of HCP Inc. to lease 11 communities accounting for an aggregate 1,462 units in six states from California to Massachusetts. The lease carries a 10-year term and allows Emeritus the option to acquire the assets during the period commencing with the close of the fifth year of the lease until its expiration. If the company decides to acquire the portfolio, the price tag will be a minimum $300 million.
Senior Living Facilities Draw More Men
Aug. 18, 2008
Senior living communities, traditionally home to populations of predominantly female residents, are now experiencing significant growth of their male populace. The trend is particularly prevalent at independent living facilities--be they dedicated independent living properties or housing units within continuing care retirement communities.
HCP Wraps Up $500M Offering
Aug. 13, 2008
Long Beach-headquartered HCP Inc. has just concluded its offering of 14.95 million shares of common stock, which, at a price of $33.50 per share, yielded the healthcare REIT an aggregate $500 million. The company originally priced the offering of just 13 million shares on August 6 with hopes of taking in $435 million. HCP plans to use the proceeds from the offering to repay part of its outstanding debut under a bridge loan facility. In other recent financial transactions, in late May, the company placed $259 million of secured debt on 21 of its nearly 300 senior housing properties. The debt, featuring a seven-year term with a fixed interest rate of 5.83 percent, was provided by Grandbridge Real Estate Capital L.L.C. and purchased by Fannie Mae.
Life Sciences Trends Point to Continued RE Demand
Aug. 12, 2008
The life sciences industry's real estate needs in the nine key U.S. markets continue as soaring construction costs hinder the upgrading of existing office space, international players compete for the limited pool of high-end accommodations and businesses increase reliance on outside real estate services providers, according to a new report by CB Richard Ellis Inc.
 

 

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