Sub Markets

Property Sectors

Topics

Boston & New England CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Boston & New England  + Metro Boston  + Finance  | 

Diversified Healthcare Trust Closes $140M Mortgage on 14 Senior Living Properties

Diversified Healthcare Trust (DHC) closed a $140-million mortgage financing secured by 14 senior living communities located in nine states and consisting of 1,375 units managed by Five Star Senior Living. The non-recourse, three-year loan has an initial maturity date of March 31, 2028, and two one-year extension options. Newton, MA-based DHC intends to use the loan proceeds to redeem a portion of its outstanding 9.750% senior notes due 2025.

In connection with the financing, DHC purchased a one-year interest rate cap with a SOFR strike rate equal to 4.50%. The loan-to-value ratio on the financing is approximately 62% and the implied cap rate of the collateral communities is 7.0%, or $163,500 per unit.

As previously disclosed, DHC has executed three additional term sheets with various lenders for total loan proceeds of approximately $200 million. These are expected to close within the next 45 days.

Pictured: The Wellstead of Rogers and Diamondcrest Senior Living, managed by Five Star.

Connect

Inside The Story

Diversified Healthcare Trust

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Financing