Newcastle Investment Corp. (NYSE:NCT) announced today it has completed its acquisition of 51 independent living properties from an affiliate of Holiday Retirement for $1 billion.
Total transaction costs amounted to $1.04 billion—the purchase price funded with $720 million of non-recourse, fixed-rate mortgage debt and $320 million of equity.
The debt has a weighted average coupon of 4.15% and consists of a 7-year term loan of $357 million and a $363 million loan with a term of 10 years.
Holiday will continue to operate the properties acquired by Newcastle pursuant to a 17-year master lease, which has an initial lease yield of 6.5%, with 4.5% increases in years two and four and increases based on the Consumer Price Index in years 5-17.
Newcastle, a company managed by an affiliate of global investment management firm Fortress Investment Group LLC, announced it would acquire the properties from Holiday in November.
Newcastle has invested more than $500 million of equity throughout the past 18 months to acquire 84 senior housing properties with over 10,000, according to a release from the company.
Written by Jason Oliva