Thursday, April 4, 2019

ReNew REIT Gets $159M From KeyBank to Acquire Senior Housing, Including 3 in PA

by Steve Lubetkin
KeyBank Real Estate Capital’s Healthcare Lending platform provided ReNew Investors and affiliated entities more than $159 million in acquisition financing comprised of $85 million in Fannie Mae loans, $16 million in Freddie Mac loans and a $58 million bridge loan, to acquire eight seniors housing communities in a series of four separate transactions.
The acquired properties total 813 units including independent living, assisted living and memory care in Michigan, Pennsylvania and Virginia.

Toledo, OH-based ReNew is a privately held company investing in independent living, assisted living and memory care communities.
KeyBank did not disclose the names and locations of the facilities involved in the transactions, but according to Real Capital Analytics, a proprietary research database that tracks commercial real estate  transactions, ReNew acquired three properties in Pennsylvania in February 2019 using Fannie Mae financing of at least $55 million, the 137-unit Keystone Villa at Ephrata, 100 N State St Ephrata, PA; 125 units at Keystone Village at Fleetwood, 501 Hoch Rd., Blandon, PA; and 247 units of senior housing at Keystone Villa at Douglasville, 1152 Benjamin Franklin Hwy., Douglassville, PA. The three properties were acquired from Capital Health Group, Media, PA.

The Real Capital Analytics database did not list transactions in Michigan and Virginia that could be connected to the KeyBank financing.

KeyBank established a corporate lending relationship with ReNew in 2018 acting as lead arranger and administrative agent for the company’s inaugural $100 million corporate credit facility, which was subsequently increased to $150 million in December 2018. The recent financings are consistent with Key’s approach of tailoring capital solutions to client’s needs and includes balance sheet lending (corporate financing, bridge lending) and permanent commercial mortgage solutions (Fannie Mae, Freddie Mac, Life. Co, FHA). The recent financings were comprised of a mix of attractive fixed- and floating-rate debt all with extended interest-only payments, which allows ReNew to maintain a low cost of capital.
Laura Conway and Brandon Taseff of Key’s Institutional Real Estate Healthcare Group led the financing of the balance sheet lending products and teamed with Charlie Shoop of Key’s Healthcare Banking Commercial Mortgage Group who arranged the permanent financing with Fannie Mae and Freddie Mac.

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