KeyBank Real Estate Capital has provided a $249 million Federal Housing Administration (FHA) financing on a portfolio of 22 senior housing facilities in the Southern US.
The borrower, private investment management firm Formation Capital, used the financing to pay down an existing bridge loan, according to the bank.
Seventeen facilities in the portfolio are in Florida and the remaining five are in Mississippi, with a combined total of 2,682 beds. All 22 properties are skilled nursing facilities.
John Randolph, senior mortgage banker at KeyBank Real Estate Capital, said in a statement that the bank’s strong relationship with the FHA allowed them to secure the financing within six months of the properties’ acquisition. He added that the firm will expand its relationship with Formation Capital as that company grows its share in the seniors housing market.
KeyBank has been a top lender in the US senior housing market this year. The bank’s commercial real estate arm provided a $324 million financing to the Chicago-based real estate company Enlivant on a portfolio of 76 US senior care facilities in June and a $202.1 million agency financing on a senior housing community portfolio of Houston, Dallas, and Austin, Texas properties this April. The bank held assets worth approximately $101 billion as of June 30, 2016.