Freddie Mac Purchases $140 Million Mortgage Pool for Senior Housing

Article excerpt

Freddie Mac announced it has purchased a $140 million pool of mortgages, consisting of seven senior housing properties across four states, from Capmark Finance Inc., Horsham, Pennsylvania.

The $140 million, combined with a majority investment from sponsor Prudential Real Estate Investors (PREI), Parsippany, New Jersey, enabled The Shelter Group, Baltimore, to refinance seven Brightview senior housing properties and recapitalize, according to Mitchell Kiffe, Freddie Mac's vice president of production and sales.

"The fact that the properties are located in strong markets, coupled with PREI's investment expertise and The Shelter Group's seniors housing experience, made this a great transaction," said Kiffe. "The seniors housing market is growing by leaps and bounds. We are proud to be a stable, reliable source of funding for it."

The mortgages are secured by five independent-living facilities and two assisted-living facilities comprising 880 units located in Rhode Island, Massachusetts, Maryland and Virginia, explained Philip Brooks, Capmark Finance senior vice president.

"The Freddie Mac program is a powerful source of financing to the seniors housing industry. Structuring financing for portfolios can be complicated and has many moving parts," said Brooks. …