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CLEVELAND-Locally-based Key Bank Real Estate Capital has arranged three loans for elderly housing properties in three states for Seattle-based Emeritus Senior Living. The loans total about $25.2 million, and will help the companies retire acquisition debt and meet the owner’s desire for a long-term, 10-year fixed-rate, according to Key Bank.

The properties include the 44-unit Liberal Springs in Liberal, KS; the 114-unit Springs at Oceanside in the San Diego market and the 137-unit Palms at Loma Linda in the Seattle market. The owner received $14.4 million for the 19-year-old Loma Linda, $5.5 million for the 19-year-old Springs at Oceanside and $5.3 million for the 14-year-old Liberal Springs.

Louis Weisman with the bank tells GlobeSt.com that the deal was a slight departure from Fannie Mae program parameters. “The twist was they were recently expanded properties without full historical operating data on the expansions,” he says.

Weisman says senior housing in general and assisted living in particular represent an area of opportunity right now due to several factors: readily available financing, rising marketplace demand, and increasing sophistication in the industry. “As our population ages, marketplace demand rises for all types of seniors housing, but assisted living is a sub-market where current demand has outpaced supply. There is a real need for more assisted living facilities,” he tells GlobeSt.com. “Because it is backed by the Agencies – particularly Fannie Mae – financing is available for quality projects through approved lenders, so the credit crunch is not impacting this property type as much as others such as retail, office, industrial or hotel properties.”

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