NEWTON, Mass. — Diversified Healthcare Trust (DHC), a Massachusetts-based REIT that owns roughly $7.2 billion of healthcare properties across 36 states, has received a $109 million mortgage financing through Freddie Mac.
The 10-year, fixed-rate loan is secured by seven senior living communities comprising 1,184 units. Five Star Senior Living, the operating division of AlerisLife Inc., manages the properties, which are located in five states.
DHC plans to use the proceeds to redeem a portion of its outstanding 9.750 percent senior notes due in 2025.
“This new 10-year loan through Freddie Mac highlights DHC’s ability to execute on refinancing opportunities and accretively reduce our interest expense,” says Matt Brown, chief financial officer and treasurer of DHC. “We believe the appraised value of approximately $199,000 per unit highlights the quality and value of assets within our portfolio.”