McLEAN, VA—It has been a busy month for Brookdale Senior Living, Inc. Last week the Brentwood, TN-based company announced a $1.2 billion joint venture with HCP Inc., creating a 14-asset continuing care retirement community portfolio.
Now the company has secured $146 million in what is billed as the first-ever Freddie Mac Seniors Housing Early Index Lock transaction. Christopher Fenton and Heidi Brunet of Berkadia Commercial Mortgage LLC arranged the financing.
The seven-year, fixed-rate loan will be used to refinance 19 of Brookdale’s senior housing properties nationwide. The financing features a 4.76% interest rate, a 60% loan-to-value ratio in a 30-year amortization schedule. The properties refinanced under the loan are located in Arizona, California, Colorado, Florida, Indiana, Kansas, Michigan, Pennsylvania, Texas and Washington. The portfolio consists of 1,170 total units: 770 for assisted living, 205 for memory care and 195 for independent living. Collectively, they are about 90% occupied.
Both of the GSEs offer early rate lock programs. As interest rates rise, these programs will undoubtedly be accessed more and more.