Sunrise Seals Portfolio Deal With $222M Loan

(To read more on the debt and equity markets, click here.)

McLEAN, VA-Arcapita Inc., an Atlanta-based firm formerly called Crescent Capital Investments Inc., has sold its 80% interest in a 16-asset portfolio in 12 states to Sunrise Senior Living REIT of Canada. Its US REIT, Sunrise Senior Living Investments Inc., remains the 20% stakeholder through a subsidiary.

In structuring the transaction, the Canadian REIT has set up its US subsidiary, SZR US Investments Inc., as the official majority owner. The portfolio consists of 327 independent-living units, 789 assisted-living units, and 279 Alzheimers units.

The deal closed with a $221.5-million loan from Newark-based Prudential Mortgage Capital Co. The loan, which equates to 65% of cost, has a 10-year term that amortizes over a 25-year period. All properties are cross-collateralized and cross-defaulted, but the Prudential terms allow release and substitution rights.

Prudential also originated a second loan for Sunrise Senior Living. The $12-million vehicle refinances Sunrise of Severna Park, a 137-unit senior living facility in Severna Park, MD. The loan has a seven-year term and amortizes over 25 years.

The loans’ originator, Thomas Goodsite, a principal in Prudential Mortgage Capital’s Atlanta office, tells GlobeSt.com that the lender earlier this year made the decision to place a heavier emphasis on the senior-lending environment. “We have done a little north of $530 million this year in senior housing,” he says. “That is a significant increase from what we did, year to date, last year.”