**Diversified Healthcare Trust Secures $140M Mortgage on Senior Living Portfolio**
Diversified Healthcare Trust (DHC) has successfully closed a $140 million mortgage financing deal secured by 14 senior living communities across nine U.S. states. The portfolio includes 1,375 units managed by Five Star Senior Living.
The non-recourse loan carries a three-year term with an initial maturity date of March 31, 2028, and includes two one-year extension options. Newton, Massachusetts-based DHC plans to utilize the proceeds to redeem a portion of its outstanding 9.75% senior notes due in 2025.
As part of the financing arrangement, DHC has purchased a one-year interest rate cap with a Secured Overnight Financing Rate (SOFR) strike rate of 4.50%. The loan-to-value ratio for the transaction is approximately 62%, with an implied capitalization rate of 7.0% and an average valuation of $163,500 per unit across the collateralized properties.
In addition, DHC has disclosed that it has signed three more term sheets with various lenders, totaling approximately $200 million in additional financing. These deals are expected to close within the next 45 days.
Pictured: The Wellstead of Rogers and Diamondcrest Senior Living, both managed by Five Star Senior Living.
