Dealmaker: KeyBank Lends $739M on Senior, Multifamily Assets

KeyBank Real Estate Capital, Cleveland, provided a $703 million financing package to a Blackstone-led joint venture that acquired a 64-community seniors housing portfolio from HCP Inc., Irvine, Calif.

The portfolio included 5,973 units of varying care types across 19 states. Brookdale Senior Living, Brentwood, Tenn., obtained an ownership interest in the portfolio as part of the new joint venture and will continue to manage the communities.

The financing package allows the joint venture to access immediate loan proceeds for the acquisition and provides future financing capacity based on the underlying assets’ performance. A Fannie Mae credit facility made up most of the financing. It provided the joint venture with long-term flexible financing on a non-recourse basis. KeyBank provided the rest.

Charlie Shoop, Senior Vice President in KeyBank Real Estate Capital’s Commercial Mortgage Group, led the financing team for the Fannie Mae credit facility; KeyBank Real Estate Capital Healthcare Group Vice President Peter Trazzera led the financing team for KeyBank’s balance sheet.

In western New York KeyBank Commercial Mortgage Group Vice President Dirk Falardeau arranged $36.4 million to refinance two multifamily properties, Kings Court Manor Apartments in Rochester and Waverlywood Apartments and Townhomes in Webster.

KeyBank provided an $11.6 million Freddie Mac first mortgage to refinance Kings Court Manor Apartments. The 184-unit property was built between 1968 and 1970. The 7-year financing included a 2-year interest-only period.

KeyBank also provided a $24.8 million Freddie Mac first mortgage to refinance Waverlywood Apartments and Townhomes. The 361-unit property received $1.5 million in renovations over the past five years, including new carpeting, floor tiling, appliances and boilers. The seven-year non-recourse loan included two years of interest-only payments followed by a 30-year amortization schedule.