Sabra Health Care REIT Inc. (NASDAQ:SBRA), a self-administered, self-managed real estate investment trust, has announced the completion of two preferred equity investments and the agreement on terms for a mezzanine loan.

On July 11, 2014, Sabra agreed to terms on a $15.5 million mezzanine loan with affiliates of Meridian ALZ Investors, LLC in connection with the previously announced pipeline agreement with Meridian. The company said that the proceeds of the mezzanine loan would be used to repay Sabra’s existing preferred equity investment in an affiliate of the borrower, totaling $8.3 million, including accrued and unpaid preferred returns, resulting in a net investment by Sabra of $7.2 million.

The Meridian Mezzanine Loan has a three-year term and will bear interest at a fixed rate of 11% per annum. It will be secured by the borrower’s equity interests in two memory care facilities and a skilled nursing facility. In addition, on July 7, 2014, Sabra said it provided $4.5 million of preferred equity funding to affiliates of Titan Senior Living, LLC for the construction of a 113-unit assisted living facility outside of San Antonio, Texas.

The preferred equity investment provides for an annual 10.0% preferred return and a purchase option which may be exercised at any time following the earlier to occur of the achievement of 90% occupancy for three consecutive months, or twenty-four months following the date a certificate of occupancy is issued for the facility.

On June 25, 2014 the company expanded its relationship with affiliates of the Leo Brown Group by providing $2.4 million of preferred equity funding for the development of Traditions at Beaumont, a 130-unit independent living, assisted living and memory care facility in Louisville, Kentucky. Shares in Sabra were down 0.07% to $28.62 on Monday morning. The company has traded between $21.55 and $31.17 over the past 52 weeks.

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