Brookdale Senior Living secures $327m in financing

Berkadia has secured $327m in fixed- and variable-rate financing for Brookdale Senior Living, the largest operator of senior living facilities in the US. The funding was originated through Freddie Mac’s new structured pool transaction program. The 10-year, non-recourse structured pool transaction features a fixed-rate loan component of $213m, a variable-rate loan component of $114m with a 30-year amortization schedule. The loan is backed by 28 senior housing facilities encompassing approximately 2,200 units.

“Brookdale places significant value in the ability to build flexibility into its capital structure, and we were very pleased to have been able to work with Berkadia and Freddie Mac to accomplish that on this transaction,” said George Hicks, Brookdale’s treasurer. “The Seniors Housing Structured Pool Transaction allows us to achieve interest rate risk diversification by placing most of the debt into a fixed rate while allowing for the ability to obtain partial releases that can be repaid out of the variable rate portion.”