HORSHAM, PA-A joint venture between Wellesley, MA-based Benchmark Assisted Living and Kuwait Finance House has secured $140 million in floating-rate refinancing for a portfolio of 11 seniors-housing properties. The assets, which represent Benchmark's longest-held portfolio, have an aggregate of 775 units at facilities in five New England states.

Proceeds of the loan are being used to pay off existing debt, fund capital expenditures and future acquisitions by the JV and return capital to the JV members. Locally based GMAC Commercial Mortgage Corp., now a Capmark company, provided the financing. Benchmark Investments III fund acquired the portfolio in joint venture with AEW Capital Management in 1997. In October 2004, AEW's initial fund matured. Benchmark then partnered with KFH in a $148-million recapitalization with a loan of $105 million, provided by GMACCM.

Philip Brooks, SVP of GMACCM's Richmond, VA-based healthcare origination office, arranged the current refinancing transaction. He tells GlobeSt.com the funding is for a three-year term. "The debt on senior living properties is generally driven by what the investor partner wants and, typically, the partner will participate for between five and seven years. A floating-rate loan allows the borrower to get out without penalties."

This portfolio contains 62 independent, 396 assisted living, and 317 Alzheimer's units in Massachusetts, Connecticut, New Hampshire, Maine, Rhode Island and Vermont. The Massachusetts properties are Harbor Point at Centerville, Tatnuck at Worcester, Orchard Valley at Wilbraham and the Falls at Cordingly Dam in Newton. The Connecticut properties are Academy Point at Mystic and Crescent Point at Niantic. The New Hampshire facilities are Greystone Farms in Salem and the Birches at Concord. The others are Bay Square at Yarmouth, ME; Blenheim-Newport in Middletown, RI; and the Arbors in Shelbourne, VT.