PGIM Real Estate Funds AEW/Merrill Gardens Portfolio Purchase
Earlier this week, we reported on the Welltower sale of 10 seniors housing communities to AEW Capital Management and Merrill Gardens Senior Living, and now we have learned that PGIM Real Estate provided the acquisition debt. The partnership buyer obtained a $460 million loan with a seven-year term. There is also a combination of fixed-rate and floating-rate terms. The debt funded both the acquisition and the recapitalization of the 10-property portfolio, which includes a total of 1,507 units of independent living, assisted living, memory care and even some multifamily units. There are also approximately 29,000 square feet of... Read More »
Welltower Portfolio Sold
Since last March, we have been wondering what happened to Welltower’s large sale of a prominent seniors housing operating portfolio of western senior living properties. It would have been the largest deal of the year so far at the original $740 million price, but it fell apart, as we assume many deals did once the coronavirus pandemic unleashed its terror. We had heard through the grapevine that it was still in the market, but it wasn’t until late last week that we saw in some local publications out West that a few of the pieces of the portfolio were closed, according to the local real estate filings, including identifying Merrill Gardens as the operator. That would... Read More »
For Ventas, Welltower, Second Quarter Could Have Been Worse
Second quarter earnings reports are not done yet, but the majority of the companies and REITs have reported. We were obviously not expecting a good quarter, but given the trend lines from March through June, the results could have been worse. In fact, for many companies it appears as if the worst is behind them. Or maybe it is better said that the bad news is getting less so. Let’s just say, the fat lady has not completed her song yet. Before we get into some of the specifics of the two largest REITs, which happen to have the largest seniors housing operating portfolios, we do have some observations from the companies reporting. First, it appears that labor costs have declined for... Read More »
Capital Senior Living Returns 18 Properties to Fannie Mae
It’s been quite a week of earnings announcements from the publicly traded senior care companies, with Healthpeak Properties, Welltower, CareTrust REIT, Sabra Health Care REIT, Omega Healthcare Investors, Five Star Senior Living, Diversified Healthcare Trust and The Ensign Group all reporting. Capital Senior Living Corporation also came out with its second quarter results, and surprised some by revealing it was turning 18 properties in forbearance with Fannie Mae back to the agency lender. We have never heard of a company basically handing the keys over to Fannie Mae for that many communities. It is safe to say we are in unchartered territory that does not fail to surprise us, to say the... Read More »Schedule a demo
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