PGIM Real Estate Provides $460M Loan As Part Of Merrill Gardens Portfolio Acquisition

PGIM Real Estate provided a $460 million loan to help fund the acquisition and recapitalization of a 10-property senior living portfolio operated by Seattle-based Merrill Gardens.

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

Previously, local news sources reported that certain communities had changed ownership, leading to speculation that the entire 10-property portfolio had traded. Earlier this week, Newmark Knight Frank confirmed that the firm had advised on the transaction, and The SeniorCare Investor reported on a rumored sale price of about $700 million.

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The properties were acquired from Toledo, Ohio-based real estate investment trust Welltower (NYSE: WELL) by a partnership of AEW Capital Management and Merrill Gardens.

The portfolio consists of a mix of 1,507 independent living, assisted living, memory care and multifamily units, as well as 29,000 square feet of ground-floor retail, according to Thursday’s press release from PGIM Real Estate.

“The success of this transaction is a testament to strength of our relationship with both sponsors and the collaboration required by all parties to navigate a turbulent and uncertain market climate,” stated Trace Wilson, executive director at PGIM Real Estate, who led the transaction on the firm’s behalf. “Our ability to execute the deal also underscores the quality of the portfolio itself, which has properties located in sought-after infill locations that benefit from strong market fundamentals and favorable demographic trends.”

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

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