TODAY’S DEALS: Senior Housing Properties Trust to Buy 20 Communities for $304M

Senior Housing Properties Trust to acquire 20 communities for $304 million; Harbor Group affiliates to buy 20 property mulifamily portfolio for $165.9 million; and Transwestern Realty funds mezz loan for new construction.

Newton, Mass.—Senior Housing Properties Trust has entered into an agreement to purchase 20 senior living communities for approximately $304 million. The transaction is expected to close during the second quarter of 2011.

The 20 communities are located in five states: North Carolina (seven communities); South Carolina (five communities); Florida (four communities); Virginia (two communities) and Georgia (two communities).

Senior Housing Properties Trust expects to fund the purchase by taking approximately $79 million of mortgage loans and using cash on hand and drawings under its $500 million revolving credit facility which was largely undrawn before this transaction.

Harbor Group to acquire eight multifamily properties for $166M

Norfolk, Va.—Affiliates of Harbor Group International LLC have contracted to purchase an eight property multifamily portfolio in the Hampton Roads area of Southeast Virginia and have recently closed on two of the properties. In its entirety, the portfolio consists of 2,508 rental apartments at a purchase price of $165.9 million.

“These acquisitions represent an outstanding opportunity to acquire a diversified portfolio of well-located multifamily assets with potential upside through capital upgrades, improving curb appeal and increasing economic occupany to current market levels,” says T. Richard Litton Jr., president of Harbor Group International.

The properties include: Bancroft Hall, a 244-unit community in Virginia beach; Chase Arbor, a 430-unit community in Virginia Beach; Pembroke Lake, a 300-unit community in Virginia Beach; Auburn Chase, a 272-unit community in Newport News; Heatherwood, a 232-unit community in Newport News; Hampton Center, a 418-unit community in Hampton; The Oakes, a 300-unit community in Norfolk and The Birches, a 312 unit community in Chesapeake.

Transwestern Realty funds $6.19M mezzanine loan for new construction project

Austin, Texas–Transwestern Realty Finance Partners LLC participated in the closing of a $6,188,000 mezzanine loan on Circle at West Campus, a 167-unit, to be-constructed student housing development totaling 188,042 sq. ft. located at the intersection of West 25th Street and Longview Street in Austin, Texas.

The debt investment was made on behalf of Transwestern Mezzanine Realty Partners III, LLC. (“Mezz Fund III”), a fully-discretionary investment fund with over $427 million in capital. The financing was coordinated by Dallas-based HFF team members Timothy Jordan and Travis Anderson.

Mark Witt, managing director of Transwestern Realty Finance Partners, who arranged the transaction, states, “This loan represented an opportunity to invest in a fundamentally strong and stable submarket driven by the University of Texas. There is a seasoned development team in place that will lead the project from construction through lease-up for the 2012-2013 school year.”

Transwestern Realty Finance Partner’s Managing Director Thomas McCahill adds, “Mezzanine lending on the construction of well-located multifamily projects is a specific market segment we are currently targeting. Given the status of the capital markets, we believe there will be a continued need for mezzanine dollars in this area and feel it offers a good opportunity to provide strong risk-adjusted returns to our investors.”

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