Deutsche Bank is securitizing a $710 million mortgage backed by a portfolio of 155 skilled nursing, assisted and independent living facilities with 18,870 licensed beds, in 20 states.
The borrower, SAVA Senior Care, used loan proceeds to refinance existing debt on the properties, pay closing costs, fund upfront reserves, and cash out $182.5 million of equity.
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The $665 million loan is secured by close to 4,000 multifamily units across five states. California properties account for over half of the portfolio's value.
The 18 centers operated by industrial real estate management firm LBA Logistics are nearly all warehouse/distribution types, with no flex-industrial space pooled into the collateral mix.
Bankers Healthcare Group, affiliated with Pinnacle Financial, is launching into securitization to branch out from its primary strategy of selling its medical-professional loans to community banks.
Instead of marketing securities backed by commercial property mortgages, STORE Capital chooses the more esoteric option of securitizing the income from its triple-net leases – a similar strategy to REITS such Spirit Realty Capital and SCP Financial.
Plans to begin rating securitizations backed by fix-and-flip mortgages may help lenders create new capacity and satisfy growing demand for short-term financing of house flipping projects.
