Merrill Gardens is growing yet again, through the development of two more assisted living/memory care communities in Washington and Georgia. This comes just months after Seattle-based Merrill and an unidentified partner bought out the majority stake owned by an affiliate of Heitman in a small portfolio of four senior living communities either developed or acquired in the previous couple of years. That sale was arranged by Cushman & Wakefield.
But now, the company is growing again in a partnership with its sister company, Pillar Properties. First, in its hometown of Seattle, Merrill opened a community with 91 independent/assisted living and 10 memory care units, at a total development cost of $40 million, or $396,040 per unit. The design of the property was inspired by the Scandinavian heritage of the Ballard neighborhood, and featured an open kitchen and numerous amenities. A second community in Woodstock, Georgia was built with 114 IL/AL and 16 MC units, costing $29.5 million, or $226,900 per unit. Included at the luxury property were amenities like a theater, wine bar-style bistro and plenty of common space. Projected lease up at both communities is about 12 months.
This is a strong growth period for Merrill Gardens, which also recently opened a 175-unit senior living community in Madison, Alabama, to the tune of $40 million, or $228,571 per unit. Helping Merrill with its growth is HJ Sims, which co-invested $15 million in an investment fund (RDM V, LLC) back in August 2016 for the purpose of acquiring and development seniors housing and multifamily properties. To fund the initial capital call of its 19% interest in RDM V, Sims placed $9.375 million of taxable bonds, and committed to raising the additional capital as required.
