CBRE has secured a $410m Freddie Mac loan for Northstar Asset Management Group’s $640m purchase of The Fountains Portfolio, a 15-community national senior housing portfolio located across 11 US states.
The seven-year fixed rate loan includes interest-only payments for 39 months at an all-in-rate of 3.92%.
The 3,804-bed senior housing portfolio includes a combination of independent living, assisted living, memory care and skilled nursing facilities in Arizona, California, Florida, Illinois, Missouri, Michigan, New York, North Carolina, Oklahoma, Virginia and Washington.
As part of the acquisition, Northstar retained Watermark Retirement Communities as manager for the properties. The seller was Fountains Senior Living Holdings LLC.
CBRE’s Aron Will in Houston, Texas, Mitchell Kiffe in McLean, Virginia, and Matthew Whitlock in Boston, Massachusetts arranged the financing.
“This was a complex transaction with many moving pieces, especially considering the composition of the [retirement communities],” Will said. “We are pleased to continue to provide creative debt solutions for NorthStar and Watermark’s acquisition activity and help them deliver attractive returns to their investors.”
CBRE was the top originator of Freddie Mac loans in 2014, with $5.7bn in financing; $808m of that went into senior housing, also making the firm Freddie Mac’s #1 senior housing lender.
Lisa Widmier, EVP of CBRE’s National Senior Housing team represented the seller.