Apollo Commercial Completes $130M Loan

The company closed on a junior mezzanine loan for a portfolio of 155 healthcare properties across 20 states.

By Keith Loria, Contributing Editor

ARI Chairman Jeffrey M. Gault
ARI Chairman Jeffrey M. Gault

New YorkApollo Commercial Real Estate Finance Inc. has closed a $130 million junior mezzanine loan, secured by the equity interests in a portfolio of 155 healthcare properties representing 18,662 licensed beds across 20 states.

“This transaction demonstrates ARI’s commitment to provide the company’s borrowers with creative capital solutions,” ARI CIO Scott Weiner said in a prepared release. “For this transaction, ARI worked with an existing borrower to tailor the loan for their specific financing needs, while at the same time generating an attractive, risk-adjusted return for ARI.”

The floating-rate junior mezzanine loan has a two-year initial term with three two-year extension options and an appraised loan-to-value of approximately 62 percent. It is part of a $1.05 billion whole loan which also includes a $710 million first mortgage loan and a $165 million senior mezzanine loan provided by investment funds managed by subsidiaries of Apollo Global Management LLC.

The whole loan will be used to refinance existing debt on the portfolio, which includes a $39 million mezzanine loan provided by ARI in 2014, which has been repaid.

The commercial loan brings the company’s year-to-date total capital commitment and deployment to roughly $879 million.

Additionally, ARI has received $34.5 million from the repayment of a first mortgage loan secured by a multifamily property in Brooklyn, N.Y.

Earlier this month, the company closed four commercial real estate loan transactions totaling $325.5 million and funded $16.6 million for previously closed loans.