KeyBank Healthcare Funds Blackstone’s $703M Senior Housing Acquisition

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The portfolio varies among care types, with 5,973 units in 64 communities. Spread across 19 states, they are currently operated by Brookdale Senior Living.

moneyCleveland—The Healthcare platform of commercial real estate finance provider KeyBank Real Estate Capital  furnished a $703 million financing package to a Blackstone-led joint venture, which acquired a well-diversified 64-community seniors housing portfolio from HCP Inc.

The portfolio is made up of 5,973 units of varying care types spread across 19 states. The 64 communities are now operated by Brookdale Senior Living, which will continue managing the communities on an ongoing basis. As part of the new venture, Brookdale will also obtain an ownership stake in the portfolio.

The financing package allows the joint venture to access immediate loan proceeds for the acquisition. It also provides future financing capacity based on the performance of the underlying assets. The financing is for the most part comprised of a Fannie Mae Credit Facility. It provides the joint venture with long-term, low-cost, flexible financing on a non-recourse basis and is highlighted by flexible terms.

The financing team for the Fannie Mae Credit Facility was led by Charlie Shoop of KeyBank Real Estate Capital’s Commercial Mortgage Group. Peter Trazzera of KeyBank Real Estate Capital’s Healthcare Group led the financing team for KeyBank’s balance sheet. According to KeyBank Real Estate Capital, the combined balance sheet and Agency execution showcases the breadth and integrated nature of KeyBank’s Healthcare platform, as well as its capacity to provide its clients with creative solutions.

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