Apollo Commercial Real Estate Finance (ARI) has provided a $130 million junior mezzanine loan to an undisclosed borrower on a 155-property US healthcare portfolio, part of a $1.05 billion package the firm and its affiliates have provided.
The mezzanine loan is part of a whole loan on the portfolio totaling $1.05 billion, which also consists of a $710 million first mortgage loan, a $165 million senior mezzanine loan, and a $45 million of pari passu junior mezzanine loan, all provided by investment funds managed by Apollo Global Management and its affiliates (Apollo).
The whole loan refinances existing debt on the portfolio, which includes a $39 million mezzanine loan ARI provided in 2014. The portfolio consists of 18,662 licensed beds across 20 states.
The $130 million floating rate junior mezzanine loan has a two-year initial term with three two-year extension options, a loan-to-value ratio (LTV) of 62 percent and a 12 percent rate of return.
Scott Weiner, CIO at the company that manages ARI, said in a statement that the firm provided the loan to an “existing borrower,” but a spokesperson for the firm did not respond to requests for further comment.
Last year marked a record year for ARI, with the firm’s total investments reaching $1.1 billion. ARI’s parent company, Apollo Global Management, had approximately $186.3 billion of assets under management as of June 30, 2016.
ARI is a real estate investment trust that primarily originates, invests in, acquires and manages performing commercial real estate first mortgage loans, subordinate financings, and commercial mortgage-backed securities.