Seniors Housing W Minnesota

Minnesota's Oak Grove Capital helps Newcastle Investment Corp. purchase eight seniors housing communities

St. Paul, Minn.-based Oak Grove Capital, a national provider of real estate financial services, recently originated an $88.4 million Fannie Mae DUS® credit facility to finance the acquisition of eight seniors housing communities located in California, Oregon, Utah, Arizona and Idaho.

St. Paul, Minn.-based Oak Grove Capital, a national provider of real estate financial services, recently originated an $88.4 million Fannie Mae DUS® credit facility to finance the acquisition of eight seniors housing communities located in California, Oregon, Utah, Arizona and Idaho.

The properties were purchased by subsidiaries of Newcastle Investment Corp. from BPM Senior Living of Portland, Ore. The eight communities will be managed by an affiliate of Newcastle.

The purchase price totaled $143 million plus related expenses, funded by the $88.4 million Fannie Mae credit facility and a $55 million equity investment from the borrowers. The credit facility, which consists of a fixed-rate loan and a variable-rate loan, matures in seven years.

“This was a very complicated transaction,” said Bill Kauffman, managing director of seniors housing at Oak Grove Capital. "But Oak Grove and Fannie Mae worked through the complexity, and the borrower received excellent terms in a flexible structure.”