HCP Acquires $720 Million Stake in Nursing Home Chain
	Bucking Trend, Community Bank Finances Seniors Housing
	Fannie Mae Provides $512.9 Million Mortgage to Giant REIT

Making a bold statement in a recessionary environment, real estate investment trust HCP has purchased a $720 million stake in the first mortgage of HCR ManorCare, one of the nation’s largest nursing home owners and operators.

The debt was purchased at a discount of about $590 million, making it one of the biggest seniors housing deals so far this year.

The seller of debt, which was not disclosed, financed 72% of the purchase price. HCP contributed $165 million in equity. Stock analysts anticipate HCP’s levered rate of return will range from 21% to 27%, depending on when the debt is repaid.

Even as most conventional lenders avoid commercial real estate altogether, Sunwest Bank is carving a niche in seniors housing. The Tustin, Calif.-based bank began lending on retirement projects in 2009 after studying the market for several years.

"There's a great opportunity now for community banks like Sunwest," says Benjamin Frank, vice president and relationship manager at Sunwest Bank.

Community banks are thought to have stronger balance sheets than many large banks and could be a source of capital for seniors housing owners and operators who need to refinance their properties.

Large lenders are busy with existing loans, notes Meredith Oppenheim, senior vice president at real estate investment banking firm Savills in New York. "They're working through situations on their books before they lend more money."

In one of the largest mortgages secured by seniors housing properties ever provided by Fannie Mae, Seniors Housing Properties Trust (NYSE: SNH) closed on a $512.9 million loan in early August.

The 10-year loan originated by Citibank is secured by first liens on 28 senior living properties in 16 states. Based in Newton, Mass., Seniors Housing Properties Trust owns 221 senior living communities totaling 25,840 units. The giant publicly traded REIT also owns two rehabilitation hospitals, 10 wellness centers and 40 medical office buildings.