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