New Senior Announces Completion of $640 Million Acquisition of Independent Living Assets (8/17/15)
NEW YORK--(BUSINESS WIRE)--New Senior Investment Group Inc. (“New Senior” or the “Company”) (NYSE:SNR) announced today that it completed on August 12, 2015 the previously announced acquisition of 28 private pay, independent living properties (the “Portfolio”) from affiliates of Holiday Retirement (“Holiday”) for $640 million. The Portfolio is 100% private pay, contains 3,298 units located across 21 states and had an average occupancy rate of 89.8% for July 2015. The Portfolio will continue to be operated by Holiday under new property management agreements.
The acquisition of the Portfolio was funded with cash on hand and proceeds from a fixed rate, 10-year first mortgage loan (the “Loan”). The Loan, which was obtained from Freddie Mac through Walker & Dunlop, is secured by the Portfolio. The aggregate amount of the Loan is approximately $465 million, and the Loan bears interest at a fixed rate of 4.25%. As a result of the proceeds from the Loan being approximately $15 million higher than originally expected, the Company intends to pay down $15 million of existing floating rate debt on September 1, 2015.
“This acquisition further increases our industry-leading private pay senior housing exposure to 92% of our NOI,” New Senior Chief Executive Officer Susan Givens said. “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. 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.”
ABOUT NEW SENIOR
New Senior is a real estate investment trust focused on investing in senior housing properties across the United States. The Company is one of the largest owners of senior housing properties and currently owns 152 properties in 37 states. New Senior is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm. More information about New Senior can be found at http://www.newseniorinv.com