New Senior completes $640M acquisition
New Senior Investment Group has completed its previously announced $640 million acquisition of 28 independent living properties from affiliates of Holiday Retirement, the real estate investment trust announced.
The portfolio is 100 percent private pay, contains 3,298 units located across 21 states and had an average occupancy rate of 89.8 percent in July, according to New Senior. Holiday Retirement will continue operate the properties.
“This acquisition further increases our industry-leading private pay senior housing exposure to 92 percent of our NOI,” Susan Givens, New Senior CEO, said in a statement. The financing terms improve New Senior's balance sheet by extending the average maturity of the company's total debt and increasing its fixed rate debt to approximately 60 percent of our total debt, she added.
The acquisition was funded with cash on hand and proceeds from a fixed rate, 10-year first mortgage loan with a fixed interest rate of 4.25 percent. Proceeds from the loan are about $15 million higher than originally expected, so New Senior plans to pay down $15 million of existing floating rate debt on Sept. 1.
New Senior owns 152 properties in 37 states. The trust is managed by an affiliate of global investment management firm Fortress Investment Group LLC, a global investment management firm.