KeyBank Real Estate Capital secured $105.9 million in financing to recapitalize a portfolio of six assisted living/memory care communities operating under the Heartis brand, on behalf of their owner, Caddis Partners. The financing structure consists of an $80 million syndicated senior credit facility and a $25.96 million mezzanine loan provided by an institutional partner.
The portfolio has a combined 631 units and 642 total beds, including both assisted living and memory care services. Five Heartis properties are located in Clear Lake, Longview, San Antonio, Arlington and Waco, Texas, while the sixth property is located in Peoria, Illinois.
This financing will allow for stabilization of the portfolio following issues related to Covid-19, and includes an attractive structure with an advantageous cost of capital. Grant Saunders and Zach Shulkin of KeyBank Real Estate Capital’s Healthcare Group and Jon Voight of KeyBanc Capital Markets-Real Estate Syndications structured and syndicated the financing.
