Brookdale Senior Living has completed about $600 million in mortgage refinancings across 42 senior living properties, eliminating near-term debt maturities while shifting its capital structure toward fixed-rate financing.
The nation's largest senior living operator refinanced all remaining 2026 mortgage debt, totaling $350 million and an additional $200 million in 2027 maturities, through three separate transactions with Fannie Mae, Freddie Mac and commercial lenders. The deals closed in December.
Brentwood, Tennessee-based Brookdale transformed its debt profile by increasing fixed-rate exposure and pushing maturities well beyond 2026. The refinancings are comparable to prior loans, meaning annual net interest stays flat despite the extended terms.
The execution of the company's strategy "has resulted in the operational strength that underpins these favorable refinancings," Dawn Kussow, Brookdale's executive vice president and chief financial officer, said in a statement.
The company secured $245.8 million through a Fannie Mae credit agreement originated by Capital One. The financing covers 17 properties.
Ninety percent of the loan, or $221.2 million, carries a fixed rate of 5.69% with interest-only payments for five years and a January 2036 maturity date. The remaining $24.6 million portion bears a variable rate, based on a monthly average of the benchmark Secured Overnight Interest Rate, or SOFR, plus 2.11%. The loan features interest-only payments for three years and matures in January 2031.
PGIM's real estate business provided $146.1 million through Freddie Mac's loan program for nine properties. The non-recourse loans carry a fixed rate of 5.48%, include interest-only payments for two years, and mature in January 2033.
Capital One also originated a separate $205 million non-recourse loan secured by 16 properties. The financing bears a variable rate of one-month SOFR plus 2.3% with interest-only payments for three years and a December 2028 maturity.
Brookdale operates 584 senior living complexes across 41 states, serving about 51,000 residents.