PGIM Real Estate closes $ 460 million senior real estate loan
AEW Capital Management and Merrill Gardens Senior Living have acquired a portfolio of 10 properties and 1,507 units on the West Coast from Welltower. PGIM Real Estate provided $ 460 million in acquisition financing through a series of seven-year notes with a combination of floating and fixed rate terms.
The portfolio includes a mix of independent living, assisted living, memory care and multi-family units, in addition to 29,000 square feet of retail space.
According to public records, three Seattle-area senior housing communities totaling more than 400 units were part of the deal: Merrill Gardens at the University, Kirkland and the Renton Center. Silicon Valley Business Journal previously reported two Bay Area properties, Merrill Gardens in Gilroy and Willow Glen, also changed hands at the same time. Prior to the sale, Merrill Gardens operated all assets in partnership with Welltower.
The senior housing industry has quickly adapted to the challenges that the pandemic has presented, although many uncertainties remain. On-site amenities and activities have been largely reduced to minimal levels, though some, like fitness centers and hair salons, may be making a comeback. At the same time, some major changes in the design of senior housing and operations could be here to stay.