Berkadia Originates $366.7M in Financing for 39 Brookdale Senior Living Communities in 17 States

NEW YORK — Berkadia has arranged two loans totaling $366.7 million for two Brookdale Senior Living portfolios consisting of 39 seniors housing properties. The two portfolios are located across 17 states, including California, Illinois, New York, North Carolina, Texas and Washington. Managing directors Heidi Brunet and Christopher Fenton of Berkadia’s Seniors Housing and Healthcare Group originated the financing for Brookdale (NYSE: BKD), which will use the loans to refinance existing debt on the properties. Brunet and Fenton secured a $226.4 million, 10-year loan through Berkadia’s Fannie Mae program for the first portfolio of 21 properties totaling 1,924 units. The portfolio, which has an average occupancy of 90.6 percent, consists of 5.7 percent independent living, 15.9 percent memory care and 78.4 percent assisted living units. The pair also closed a $140.3 million, seven-year loan through Berkadia’s Freddie Mac program for a portfolio of 18 properties. The portfolio, which consists of 1,190 units in total, comprises 22.9 percent memory care and 77.1 percent assisted living units. Average occupancy was 87.8 percent at time of closing. “Our team’s extensive experience working with seniors housing assets across the country allowed us to secure competitive loan terms for these expansive portfolios,” said Brunet. “We have a long-standing relationship with Brookdale Senior Living, and we leveraged our close insights into their long-term strategic goals, our strong ties with the GSEs and our experience in the sector to smoothly and effectively manage these transactions.” Brookdale Senior Living is the largest owner and operator of seniors housing communities in the United States. The company owns 1,135 communities in 47 states. Brookdale’s stock price closed at $25.04 on Thursday, Sept. 24, down from $33.10 a year ago. Berkadia is one of the largest Fannie Mae, Freddie Mac and HUD lenders in the U.S. — Jeff Shaw