MCLEAN VA., AND ATLANTA — Freddie Mac has purchased a $140 million pool of mortgages from Capmark Finance. The transaction allowed The Shelter Group to refinance seven Brightview senior housing properties and recapitalize.
The mortgages are secured by five independent living facilities and two assisted living facilities comprising 880 units. The properties are located in Rhode Island, Massachusetts, Maryland and Virginia.
“The fact that the properties are located in strong markets, coupled with PREI’s investment expertise and The Shelter Group’s seniors housing experience, made this a great transaction,” said Mitchell Kiffe, Freddie Mac vice president of Production and Sales. “The seniors housing market is growing by leaps and bounds. We are proud to be a stable, reliable source of funding for it.”
The properties were built between 1980 and 2006, and feature common dining rooms, commercial kitchens, full kitchens or kitchenettes.
The transaction featured a 10-year plus one-year fixed-rate mortgage with seven years of partial interest only benefiting from the Freddie Mac Fixed-to-Float option and the Freddie Mac Standard Delivery Option.
David Carliner, executive vice president for The Shelter Group, said, “Freddie Mac stood by us despite the fact that the financial markets saw more turbulence from the inception of the transaction until its closing than the industry had experienced in a very long time. The terms offered by Freddie Mac were super competitive. Capmark was a strong advocate for the deal and made sure that all of the pieces came together.”
In other senior housing news, Charlotte, N.C.-based Grandbridge has closed on a Fannie Mae credit facility worth up to $350 million for a REIT.
The borrower, whose name was not disclosed, will use the credit facility to buy a 1,930-unit, multi-state senior housing complex.
“This was a challenging transaction that called for tremendous teamwork by the borrower, Fannie Mae and Grandbridge,” said Scott Kavel with Grandbridge’s Senior Housing Group.
Grandbridge is a subsidiary of BB&T Corp. principal subsidiary Branch Banking and Trust Company.