A CMBS called GS Mortgage Securities Corp. Trust 2011-ALF is in the market. The transaction is is backed by the beneficial interest in a three-year loan, cross-collateralized first lien mortgage secured by 29 assisted living facilities (ALFs), according to a Fitch Ratings presale report.

These ALFs are owned collectively by 19 property firms known as the PropCo borrowers. The collateral for the note also comprises the PropCo borrowers’ interest in the leases and rents, 19 operating firms' (the OpCo borrowers) interest in the operating revenues from the properties as well as the cash management account assignment, the rating agency said.

Proceeds from the notes, aside from the added equity, were used by the sponsors Sunrise Senior Living and CNL Income Partners to buy the properties from a joint venture between Sunrise and Arcapita.

According to Fitch, the expected ratings reflect an analysis of the cash flows from the trust's assets and do not serve as an assessment of the ultimate parent's corporate default risk.


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