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.
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