KeyBank Lands $636M Fannie Mae Financing for Senior Housing Realty Trust

Key (NYSE: KEY) closed a $635.6 million Fannie Mae credit facility for subsidiaries of Senior Housing Realty Trust (SHRT), a Maryland real estate investment trust owned by an affiliate of Senior Resource Group, LLC (SRG), and its institutional partners, the bank announced Wednesday. 

SRG is a national operator of luxury seniors housing communities. The new Fannie Mae credit facility refinanced a 12-property senior care community portfolio across California, Arizona, Oregon and Georgia. 

While the size of the refinance deal is notable at over half a billion dollars, securing the loan amount was not the biggest hurdle in executing the deal, Allison Holland, senior vice president of KeyBank Real Estate Capital, tells SHN.


“[The total amount] wasn’t as much of a factor because it is one single loan secured by the properties,” Holland says, adding that the most challenging part in securing a deal with multiple parties is “getting the master credit facility agreement that is negotiable and agreeable for all the partners.”

The new structure provides a 10-year, fixed rate, interest-only loan with releases, additions, and substitutions, and the capacity to expand with additional fixed or floating debt. 

“This is solely a result of this structure from Fannie Mae, and is different from other financing structures on the market,” she says, noting that this credit facility structure allows a “tremendous amount of flexibility to borrowers, which is different than a single loan structure.”


“Key was able to offer a fully integrated financing solution from a single platform,” says Wick Peterson, CFO and executive vice president at SRG, in a statement. “The depth and breadth of Key’s financing capabilities, and the ideas they brought to the table, secured an excellent interest rate and loan structure.” 

When evaluating the best way to move forward, Key considered multiple ways to refinance the 12 properties, Holland says.

“Six of the 12 properties had existing debt in place with a set maturity date that was different from the other six, so we looked at ways to structure two different financings and weighted the cost benefit of that to the borrower,” she says about one of the many approaches Key evaluated. “It took a lot of very broad thinking and exploring of multiple executions” to find the best deal for the borrower.

Written by Cassandra Dowell

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