KeyBank Provides $106M Senior Housing Portfolio Refi

The 631-unit deal includes assisted living and memory care properties in Texas and Illinois.
Heartis Clear Lake. Image courtesy of KeyBank Real Estate Capital

Caddis Partners has secured a $105.9 million loan for six assisted living and memory care properties operated under the Heartis brand. KeyBank Real Estate Capital provided the financing for the 631-unit, 642-bed portfolio located in Texas and Illinois.

The financing used to recapitalize the portfolio includes two components. The first, an $80 million senior credit facility, replaces a $108.2 million mortgage from KeyBank in 2017, according to public records. The second is a $26 million mezzanine loan funded by an institutional partner.

The six facilities include:

  • Heartis Clear Lake at 14520 Highway 3 in Webster, Texas
  • Heartis Longview at 1408 Lago Trail in Longview, Texas
  • Heartis San Antonio at 15430 Huebner Road in San Antonio, Texas
  • Heartis Arlington at 3424 Interstate 20 West Highway in Arlington, Texas
  • Heartis Waco at 5317 Speegleville Road in Waco, Texas
  • Heartis Peoria at 8201 N. State Route 91 in Peoria, Ill.

Each property has a wide range of amenities, including beauty salons, art studios, game rooms, theaters, spas and dining venues. Weekly housekeeping and laundry, concierge services and a 24/7 emergency call system are also offered.

Arranging the financing

Senior Vice President Grant Saunders and Relationship Manager Zach Shulkin of KeyBank Real Estate Capital’s Healthcare Group worked with Managing Director Jon Voight of KeyBanc Capital Markets-Real Estate Syndications to structure the funding.

In February, KeyBank Real Estate Capital was ranked first among the top 20 multifamily mortgage banking firms of 2021. The ranking utilized self-reported data for lenders and was topped by licensed GSE affiliates.