Colony Capital, Inc. (NYSE: CLNY) on Thursday announced the successful refinance of a $1.73 billion consolidated loan on its health care portfolio, which includes skilled nursing facilities, senior housing properties, hospitals, and medical office buildings.
The new interest-only loan totals $1.52 billion, with a five-year term and a blended interest rate of one-month LIBOR plus 3.33%. Real estate investment trust (REIT) Ventas, Inc. (NYSE: VTR) provided $490 million in financing for the deal.
“For Ventas, our investment provides accretion and excellent risk adjusted returns and, for Colony, the transaction represents an important milestone, enhancing its financial position with respect to its healthcare portfolio,” Ventas chairman and CEO Debra Cafaro said in a statement.
The new loan’s collateral package includes a total of 158 health care properties in the U.S,; however, certain assets that were collateral for the previous loan, which was repaid and discharged, are excluded.
Colony Capital’s ownership position in the properties is 70%.
The refinancing, along with other transactions completed earlier in the year, addresses four of Colony Capital’s six health care loans — representing 87% of consolidated outstanding principal balances.
“With the vast majority of our health care maturities addressed, we can dedicate our focus on operations and strategy to maximize value within our healthcare portfolio,” Colony chairman and CEO Thomas Barrack said in a statement.
Senior Living Properties Operations Acquires New Rural SNF
Senior Living Properties Operations of Fort Worth, Texas, purchased the River Valley Nursing and Rehabilitation Center in Gainesville, Texas, the Gainesville Daily Register reported. The 110-bed property provides skilled nursing, physical therapy, post-hospital care, long-term care, rehabilitation services, respite care, and memory care.
Senior Living Properties manages 37 SNFs in Texas and Oklahoma, the Daily Register noted. River Valley will be managed by Senior Living Properties regional vice president Amanda Burnett.
The acquisition did not eliminate any positions at River Valley, the Daily Register reported.
“SLP’s portfolio focuses on rural communities,” Richard Agnew, Senior Living Properties’ general counsel, told the publication. “This is opposed to larger national chains who focus on urban areas.”
Private Equity Partners with High-Acuity Operator in Ohio
Nick Martinez and Todd Okum of O&M Investments, LLC, a private equity firm focused exclusively on investing in the skilled nursing space, partnered with a high-acuity operator to purchase the 88-bed Brenn-Field Nursing Center in Orrville, Ohio.
The seller was a local owner-operator looking to divest.
The transaction was led by Connor Doherty and Brian Payant of Blueprint Healthcare Real Estate Advisors.