Welltower’s sale of a 75% ownership interest in a 39-property senior care portfolio to Chinese firms Cindat Capital Management and Union Life Insurance Co, Ltd. is back in the news, with KeyBank Real Estate Capital refinancing a portion of the original acquisition financing. In what was the fourth-largest long-term care transaction (by purchase price) of 2016, at $930 million, the Chinese joint venture took over ownership of 11 seniors housing communities master leased to Brookdale Senior Living and 28 skilled nursing/post-acute care facilities leased to Genesis Healthcare.
Welltower retained a 25% interest in the portfolio, and both operators stayed on to manage. KeyBank originally arranged a bridge loan to fund the acquisition of the skilled nursing facilities, and is now providing $99.8 million in HUD loans to refinance six of the SNFs located in the Northeast. Totaling 664 beds, the properties in question were built between 1972 and 2007 and located in New Hampshire (4), Vermont (1) and Rhode Island (1). John Randolph, Laura Conway and Brandon Taseff led the way in facilitating the transaction.
