TODAY’S DEALS: Ventas Closes on Sale of 5 Seniors Housing Assets to Emeritus, and Other Transactions
- Dec 23, 2008
By Anuradha Kher, Online News EditorChicago–Ventas recently closed the sale of five seniors housing assets to affiliates of Emeritus Corp. for an aggregate sale price of $62.5 million. The assets are located in four states and feature 432 units in total.The purchase price represents a 6.7 percent capitalization rate on current annualized cash rent of $4.2 million. Prior to the sale, Emeritus was the tenant in these five seniors housing assets. Ventas expects to record a gain of approximately $23 million on the sale.Net cash proceeds to Ventas of approximately $45 million will be used to pay down debt or for general corporate purposes. Ventas was released from approximately $7 million of existing mortgage debt. In addition, Ventas provided $10 million in seller financing for the transaction.The loan is secured by real estate and cash collateral, and is guaranteed by Emeritus. It bears interest at an average rate of 8.25 percent, payable monthly, and matures in three years. In addition, Ventas can accelerate the loan on the occurrence of various events.NorthMarq Capital Arranges $12.9M Mortgage for 181-Unit Rental CommunitySalisbury, Md.–NorthMarq Capital Inc. has arranged a $12.9 million first mortgage financing for Runaway Bay Apartments (pictured), a 181-unit multifamily complex, located in Salisbury, Md. Financing was based on a 30-year amortization schedule and was arranged for the borrower, Salisbury North Investors, LLC, by NorthMarq through its affiliation with AmeriSphere Multifamily Finance, a Fannie Mae DUS lender. Wilshire Finance Partners Provides $800,000 for Redevelopment in Twin Cities AreaMinneapolis and St. Paul, Minn.–Wilshire Finance Partners has funded $800,000 toward the redevelopment of houses, apartments and duplexes in the Twin Cities area since expanding its commercial real estate lending services to include redevelopment for Section 8 housing.“The overwhelming amount of loan requests Wilshire Finance Partners has received since expanding our services last month underscores the need for private lenders to fill the void created when traditional institutions tightened their underwriting standards,” says Thomas OBryon, CEO. “In addition to Section 8 financing, Wilshire Finance Partners has experienced an upswing in loan requests for projects ranging from opportunistic purchases, construction takeouts and lease ups to repositioning and partner buyouts, OBryon noted. Clearly, the real estate market is included in industries having difficulty obtaining loans from traditional lending institutions,” he says.