**Diversified Healthcare Trust Secures $140M Mortgage on 14 Senior Living Properties**
Diversified Healthcare Trust (DHC) has closed a $140 million mortgage financing secured by 14 senior living communities across nine states. The properties, which comprise a total of 1,375 units, are managed by Five Star Senior Living.
The mortgage is a non-recourse, three-year loan with an initial maturity date of March 31, 2028, and includes two one-year extension options. Based in Newton, Massachusetts, DHC plans to use the proceeds from the loan to redeem a portion of its outstanding 9.750% senior notes due in 2025.
As part of the financing agreement, DHC has also purchased a one-year interest rate cap with a Secured Overnight Financing Rate (SOFR) strike rate set at 4.50%. The loan carries a loan-to-value (LTV) ratio of approximately 62%, and the implied capitalization rate on the collateral communities stands at 7.0%, equating to roughly $163,500 per unit.
Previously disclosed by the company, DHC has also signed three additional term sheets with various lenders that, when combined, are expected to provide an additional $200 million in loan proceeds. These deals are anticipated to close within the next 45 days.
Pictured: The Wellstead of Rogers and Diamondcrest Senior Living, managed by Five Star.
