PGIM Real Estate grants $ 460 million loan in connection with the acquisition of the Merrill Gardens portfolio


PGIM Real Estate has provided a $ 460 million loan to help finance the acquisition and recapitalization of a senior housing portfolio of 10 properties operated by Seattle-based Merrill Gardens.

The announcement of this financing, made Thursday by PGIM Real Estate, sheds additional light on this operation.

Previously, local news sources reported that some communities had changed ownership, leading to speculation that the entire portfolio of 10 properties had been negotiated. Earlier this week, Newmark Knight Frank confirmed that the company advised on the transaction, and The SeniorCare Investor reported an assumed sale price of approximately $ 700 million.

The properties were acquired from Welltower (NYSE: WELL), a real estate investment fund based in Toledo, Ohio, through a partnership between AEW Capital Management and Merrill Gardens.

The portfolio consists of a mix of 1,507 self-contained housing, assisted living, memory care and multi-family units, as well as 29,000 square feet of ground floor retail, according to the press release. published Thursday by PGIM Real Estate.

“The success of this transaction is a testament to the strength of our relationship with both sponsors and the collaboration required by all parties to navigate a turbulent and uncertain market climate,” said Trace Wilson, Executive Director of PGIM Real Estate, who led the transaction on behalf of the company. “Our ability to execute the transaction also underscores the quality of the portfolio itself, which has properties in desirable infill locations that benefit from strong market fundamentals and favorable demographic trends.”

The loan includes fixed and variable rate conditions. PGIM Real Estate is the real estate investment and financing business of PGIM, the global $ 1.4 trillion investment management firm of Prudential Financial (NYSE: PRU).

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