New Senior Closes on $640 Million Holiday Portfolio

Real estate investment trust New Senior Investment Group Inc. (NYSE: SNR) has completed its $640 million acquisition of 28 independent living properties from Holiday Retirement. The transaction was previously announced in June.

The properties, are 100% private pay and span 3,298 units across 21 states. The properties had a 89.8% occupancy rate as of July 2015. 

The acquisition was funded by cash and the proceeds from a 10-year first mortgage loan, New Senior cited in a statement. The aggregate loan amount is approximately $465 million with a 4.25% interest rate and was obtained from Freddie Mac through Walker & Dunlop. 

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New Senior owns 152 properties in 37 states and is an affiliate of Fortress Investment Group LLC. New Senior CEO Susan Givens said the acquisition brings the Company’s private pay senior housing exposure to 92% of net operating income.

In a recent interview with Senior Housing News, Givens noted that New Senior has aggressively acquired properties this year, totaling $1.2 billion. With a heavy focus on private pay independent and assisted living assets, New Senior is seeking opportunities through small, mom-and-pop operators as well as larger acquisitions, such as the Holiday portfolio.

“As the largest operator of independent living properties in the United States, Holiday has a strong track record of outstanding performance for our existing portfolio, and we are excited to grow our relationship with them,” Givens said in a statement. “In addition, the financing further improves our balance sheet by extending the average maturity of our total debt and increasing our fixed rate debt to approximately 60% of our total debt.”

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Loan proceeds were $15 million higher than expected, and New Senior plans to use the extra proceeds to pay down $15 million worth of existing floating-rate date on Sept. 1, 2015. 

Written by Amy Baxter

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