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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.

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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.

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.

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