Tuesday, December 5, 2006

CapitalSource buys 77 LTC facilities

Chevy Chase, Md.-based CapitalSource has completed sale leaseback transactions for 77 long-term care facilities in 22 states, for $462 million. The facilities are subject to triple-net leases with a nearly 9.5-year weighted average term and are managed by 29 different operators.

The widespread purchase should strengthen the company’s standing in the healthcare and specialty financing market, one of three main focused lending businesses. The company already focuses a significant portion of its healthcare business on nursing and senior living facilities.

CapitalSource is a specialized commercial finance company that operates as a REIT. It offers a variety of financing, including first mortgage, asset-based, and mezzanine financing. In addition to the healthcare market, the company also has focused lending businesses in the structured and corporate finance markets, and a total of $11 billion in outstanding loan commitments. The company is traded on the NYSE, and was trading slightly up at $28 early this afternoon.

Source:  Commercial Property Online, http://www.cpnonline.com/cpn/article_display.jsp?vnu_content_id=1003468016

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