Real estate

KeyBank Launches $ 750 Million Healthcare Real Estate Fund with Welltower

KeyBank Real Estate Capital has implemented a $ 750 million unitranche loan program in partnership with Welltower Inc. (NYSE: WELL).

The healthcare real estate fund will provide senior mortgage financing on housing projects for skilled nurses and the elderly, according to a press release announcing the program.

A unitranche loan combines the pricing and terms of senior and junior debt into a single senior credit facility rather than having two classes of debt and working with multiple lenders.

Jim McLaughlin, Co-Head of Institutional Capital Group at Key Bank, described the product as “smooth and streamlined execution” for clients.

“We are excited about this program with Welltower adding this unitranche lending program focused on healthcare real estate to our platform,” McLaughlin said in a statement.

Nikhil Chaudhri, co-head of US investments at Welltower, said the real estate investment trust is excited to work with KeyBank on this initiative.

“Welltower’s ability to utilize its unprecedented data analytics platform, combined with its in-depth knowledge and 50 years of exclusive healthcare experience, will provide an exceptional network of relationships with key owners. / healthcare real estate sector operators to identify attractive financing opportunities, ”Chaudhri said in the press release.

Ahead of its third quarter results release on Friday, Welltower announced that it is disposing of 21 properties previously leased to Genesis Healthcare, 13 properties previously leased to ProMedica, as well as one long-term / post-acute property and two buildings from medical offices for proceeds of $ 488 million.

During a panel at the National Housing and Elderly Care Investment Center (NIC) conference this week, Chaudhri said the real estate investment trust is seeking alignment between employees, partners and investors. when entering into agreements.

“Over the past 18 months we’ve deployed about $ 6 billion of capital primarily in senior residences and when we think about how we deploy capital, we don’t think of the first year, we don’t think not in the second year, we don’t think about cap rates, ”he told the panel. “We focus on total return.

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