Atlanta—Post Properties Inc. has announced that subsidiaries of its operating partnership Post Apartment Homes LP have prepaid the outstanding amount of approximately $184.7 million on six multifamily fixed-rate notes with the Federal Home Loan Mortgage Corp. The notes were secured by mortgages on six properties located in Atlanta, Charlotte and Dallas, and would have matured on November 1, 2014. Post also paid a $6.2 million prepayment premium in connection with the prepayment of the notes.
“The prepayment of these notes and our anticipated unsecured long-term bank financing in the first quarter of 2012 is consistent with our strategy of reducing secured debt levels and borrowing costs over time and refinancing our near term debt maturities,” says Chris Papa, executive vice president and chief financial officer at Post Properties. “In that regard, we are pleased that Moody’s Investor Service last week affirmed that the Company’s senior unsecured credit rating of Baa3, and revised the Company’s outlook to positive from stable, reflecting the improvements that the Company has made to its credit profile.”
Post used $135 million of borrowings under its existing $300 million unsecured revolving line of credit and cash on hand to finance the prepayment of the notes. The company plans to refinance the amounts drawn from the credit facility with an unsecured long-term bank financing during the first quarter of 2012.
Senior Housing Properties ends 10 leases with Sunrise Senior Living
Newton, Mass.—Senior Housing Properties Trust has received word from Sunrise Senior Living that Sunrise will terminate leases for 10 senior living communities effective December 31, 2013. The 10 communities comprise 2,472 units.
Sunrise currently leases 14 senior living communities from Senior Housing Properties. The obligations are guaranteed by Marriott International Inc. According to a press release issued by Senior Housing Properties Trust, the firm believes that Marriott declined to permit Sunrise to extend Marriott’s guarantee obligations for 10 of the 14 communities. Senior Housing Properties attests that Sunrise was required to give notices of termination for the 10 leases as a result.
The 10 properties were 87.4 percent occupied during the 12 months ended September 30, 2011. Sunrise offered to extend the leases without a guarantee from Marriott, but Seniors Housing Properties declined. The two firms may continue to discuss leasing the 10 communities before the expiration in December 2013.