Subsidiares of Manhattan, N.Y.-based Newcastle Investment Corp. recently purchased an eight-property portfolio of senior housing properties from Portland, Ore.-based BPM Senior Living for a purchase price of $143 million plus related expenses.
Oak Grove Capital originated an $88.4 million Fannie Mae DUS credit facility for Newcastle to fund the acquisition. The credit facility consists of a fixed-rate loan and a variable-rate loan and matures in seven years.
The properties are located in California, Oregon, Utah, Arizona, and Idaho. Newcastle used the Fannie Mae credit facility and a $55 million equity investment to fund the transaction.
“This was a very complicated transaction, but Oak Grove and Fannie Mae worked through the complexity and the borrower received excellent terms in a flexible structure,” said Bill Kauffman, managing director of seniors housing at Oak Grove Capital, in a statement.”
“We value our relationship with Fannie Mae and Oak Grove, and their execution on this transaction was a great demonstration of why they are such great partners in our seniors housing business,” said Brian Sigman, Chief Financial Officer of Newcastle.
Written by Alyssa Gerace
Companies featured in this article:
BPM Senior Living, Newcastle Investment Corp., Oak Grove Capital
