KeyBank provoked some conversation at the recent NIC Conference after announcing that it would provide a $635.6 million Fannie Mae credit facility to subsidiaries of Senior Housing Realty Trust, a Maryland-based REIT owned by an affiliate of Senior Resource Group and its institutional partners. The facility came with a 10-year term (with 10 years of interest only) and a fixed rate, plus the option for releases, additions, substitutions and the capacity to expand with additional fixed or floating debt.
KeyBank will also be able to provide flexible financing solutions ranging from balance sheet to permanent mortgage loans. The 12 properties that are being refinanced with this facility are located in California, Arizona, Oregon and Georgia and featured a majority of IL units, with some AL and memory care. These SRG-operated communities were all built in the last 15 years and had an occupancy above 96%.
When KeyBank was approached last year to facilitate this credit facility, it had already led an $84 million syndicated credit facility in 2013 secured by a senior housing community in Los Angeles owned by a predecessor SRG joint venture. In late 2014, SHRT acquired the community, and the credit facility was then expanded to $86 million and will be refinanced by this new Fannie Mae facility.