Tom Barrack’s Colony Capital snags $1.7B refi on healthcare properties

Colony Capital's Thomas Barrack
Colony Capital's Thomas Barrack

It has been a busy first half of the year for Tom Barrack’s Colony Capital, which just has secured a $1.7 billion refinancing on more than 150 healthcare properties across the country. Healthcare real estate investment trust Ventas provided nearly $500 million as part of the financing package.

The Downtown Los Angeles-based investment firm consolidated with a five-year, $1.5 billion interest-only loan secured by its 158 healthcare properties. Those properties include senior living facilities, medical office buildings and hospitals, Colony announced in a release.

The new loan has three one-year extension options; interest rate is one-month LIBOR plus 3.33 percent.

Barrack returned to his position as CEO of the $44 billion firm late last year, after two years of falling stock prices related to its merger with NorthStar.

Sign Up for the undefined Newsletter

Colony has been busy since then. In February, the firm sold a 2.3-million-square-foot industrial portfolio to Nuveen Real Estate for $136 million.

And a after that, Colony announced it was buying a $1.2 billion industrial portfolio from an unnamed seller.

Chicago-based Ventas provided $490 million in junior tranche debt toward Colony’s refinancing. Ventas posted a strong first quarter in 2019, thanks to diversifying investments in medical and research facilities.