PGIM Real Estate Closes $460M Senior Housing Loan

The financing covers a portfolio deal of more than 1,500 units, including three properties in Seattle.
Merrill Gardens at The University. Image via Google Street View

AEW Capital Management and Merrill Gardens Senior Living have acquired a 10-property, 1,507-unit portfolio on the West Coast from Welltower. PGIM Real Estate provided $460 million in acquisition financing through a series of seven-year notes with a mix of floating- and fixed-rate terms.

The portfolio includes a mix of independent living, assisted living, memory care and multifamily units, in addition to 29,000 square feet of retail space.

Three Seattle-area senior housing communities totaling more than 400 units were part of the deal, according to public records: Merrill Gardens at The University, at Kirkland and at Renton Centre. Silicon Valley Business Journal previously reported two Bay Area properties, Merrill Gardens at Gilroy and at Willow Glen, also changed hands at the same time. Prior to the sale, Merrill Gardens had operated all the assets in partnership with Welltower.

The senior housing industry has rapidly adjusted to the challenges the pandemic has presented, even though many uncertainties remain. On-site amenities and activities have largely been reduced to minimal levels, though some—like fitness centers and hair salons—may be making a comeback. At the same time, some major shifts in senior housing design and operations could be here to stay.