A couple of REITs in good financial shape (and still open to making new investments) announced a couple of loans closed for senior care facilities. CareTrust REIT completed a $15 million secured mezzanine loan for Next Healthcare’s acquisition of a nine-property skilled nursing portfolio with approximately 1,000 beds in Virginia. The loan came with a five-year term and annual interest rate of 12%, with CareTrust funding it from its $600 million unsecured revolving credit facility. White Oak Healthcare Finance was the senior lender on the deal.
Then, National Health Investors funded a $22.2 million construction loan for the development of a 110-unit senior living community in Sussex, Wisconsin. That comes out to just over $200,000 per unit of debt. The four-year loan carries an annual interest rate of 8.5% and two one-year extensions. Plus, NHI has a purchase option on the property, which features independent living, assisted living and memory care, once it has stabilized. 41 Management will operate it as part of its growing relationship with NHI, which currently includes eight properties. Construction will begin immediately and should be complete within 18 months.