In one of the largest mortgages secured by seniors housing properties ever provided by Fannie Mae, Seniors Housing Properties Trust (NYSE: SNH) closed on a $512.9 million loan in early August.

The 10-year loan originated by Citibank is secured by first liens on 28 senior living properties in 16 states. Based in Newton, Mass., Seniors Housing Properties Trust owns 221 senior living communities totaling 25,840 units. The giant publicly traded REIT also owns two rehabilitation hospitals, 10 wellness centers and 40 medical office buildings.

Seniors Housing Properties Trust intends to use the proceeds of this mortgage financing to repay amounts outstanding under its revolving credit facility, fund investments, including possibly accelerating the previously announced pending purchases of certain medical office buildings from HRPT Properties Trust (NYSE: HRP), and for general business purposes.

All of the 28 mortgaged properties secured by the Fannie Mae loan are leased to FiveStar Quality Care, a seniors housing operator based in Boston.

Part of the loan carries a fixed interest rate while a separate portion comes with a floating interest rate. The floating rate is capped so that the maximum interest rate payable during the loan term on the full amount of the loan may not exceed 7.79% annually. The current weighted average interest rate on the transaction is 6.59% annually.

The stock price of Seniors Housing Properties Trust closed at $20.24 on Aug. 28, above the 52-week low of $9.82 but under the 52-week high of $24.98.