Brookdale Senior Living continues to make moves that put the company on surer financial footing, having just refinanced existing debt with a $111.1 million Freddie Mac loan arranged by Monique Bimler of KeyBank Real Estate Capital. Secured in two tranches of 14 cross-collateralized seniors housing properties in Arizona, Florida, Massachusetts, Maryland, Mississippi, New York, Oregon, Texas, Virginia and Washington, the first mortgage was arranged as a 10-year split payment master note. There will be a five-year interest-only period split between 40% floating rate and 60% fixed rate payments, with a 30-year amortization schedule after that.
This transaction follows a much larger $327 million Freddie Mac refinance arranged by Berkadia in December. That financing package was secured by 28 seniors housing communities and about 2,200 units. Similar to the KeyBank transaction, it was split between a $213 million fixed rate component and a $113 million floating rate component. With these financing moves and its pared down portfolio, Brookdale should be better equipped to invest in improvements and turn around operations at the community level. A lot easier said than done.