KeyBank Originates $66M in Financing for NY Senior Housing Assets

The lender’s Healthcare Group arranged a $45.8 million first mortgage and a $20.1 million first mortgage through Freddie Mac to refinance two properties.
Heather Heights of Pittsford. Image courtesy of KeyBank Real Estate Capital

KeyBank Real Estate Capital has originated $65.9 million in Freddie Mac financing for two senior housing properties in Western New York with a total of 258 units, including assisting living and memory care units.

Both loans were used to refinance existing debt. Carolyn Nazdin of KeyBank’s Healthcare Group arranged the fixed-rate loans with 15-year terms, five-year interest only periods and 30-year amortization schedules.

The larger of the two transactions was a $45.8 million first mortgage loan secured by Orchard Heights in Orchard Park, N.Y. The 162-unit property was built in 1992 and renovated in 2016. The two-story building has 114 assisted living units, 32 independent living units and 16 memory care units.

A $20.1 million first mortgage loan was secured by Heather Heights of Pittsford, N.Y., a 96-unit property built in 1999. The asset has 72 assisted living units and 24 memory care units.

More Senior Housing Transactions

KeyBank Real Estate Capital is active in the senior housing lending market. In fact, Freddie Mac listed the lender as the top senior housing seller for Freddie Mac in 2018. One of those deals included two transactions in the fall when KeyBank arranged $291 million in Freddie Mac financing for affiliates of Apollo Global Management LLC to acquire a 17-property, 2,193-unit senior housing portfolio. The firm’s Healthcare Commercial Mortgage Group and Institutional Real Estate Group closed two loans within 30 days of one another to complete the transaction.

In March KeyBank Real Estate Capital’s Healthcare Group and Healthcare Commercial Mortgage Group arranged more than $159 million in financing for ReNew Investors to acquire eight senior housing communities with a total of 813 units in Michigan, Pennsylvania and Virginia. The borrower secured $85 million in Fannie Mae loans, $16 million in Freddie Mac loans and a $58 million bridge loan. The acquisitions were done in four separate transactions between January and February.

The senior housing industry has been experiencing high demand over the past year, according to a recent report from the National Investment Center for Seniors Housing & Care.