Current regional news reports recommend that Toledo, Ohio-based real estate financial investment trust Welltower (NYSE: WELL) has actually offered its stake in all 10 neighborhoods in its senior real estate operating portfolio run by Seattle-based Merrill Gardens.
Public records in Santa Clara County, California, show that Welltower recently offered a Merrill Gardens neighborhood located in San Jose and another located in the town of Gilroy, the Silicon Valley Business Journal reported recently. The price tag on those two residential or commercial properties supposedly was more than $111 million, with Merrill Gardens itself noted as the purchaser.
A different news report on Sept. 25 from the Daily Journal of Commerce reported that Merrill Gardens and partner AEW Capital Management were buying up Welltower’s stake in the entire 10-property portfolio.
Those 10 communities are located across California, Nevada and Washington, according to Welltower’s Q2 2020 residential or commercial property list.
In Feb. 2020, Welltower announced that it had actually reached a conclusive contract to offer an assisted living portfolio of communities in those 3 states for $740 million, but the REIT at that time did not reveal the operator included.
Last week’s regional news articles recommend that Welltower has now been successful in selling its interest in the Merrill Gardens portfolio after the preliminary deal was scuttled due to Covid-19, and “word on the street” is that the portfolio sold for a little more than $700 million, The SeniorCare Financier reported Monday.
Business property advisory company Newmark Knight Frank represented Welltower in the deal, which included debt financing from a life insurance coverage company, the company verified to SHN. However, NKF did not confirm any of the other information of the offer, such as the cost or number of neighborhoods included.
Merrill Gardens referred Senior citizen Housing News to Welltower, and the REIT declined to comment for this article. AEW had actually not replied to an ask for comment as of press time.
Amidst a general downturn in senior real estate M&A deals in the midst of Covid-19, Welltower has actually already prospered in getting some significant deals finished. 7 senior real estate properties were offered to personal equity firm Kayne Anderson Realty, which also obtained 27 medical office complex. The gross sales price for all those residential or commercial properties had to do with $1 billion. Newmark Knight Frank’s Chad Lavender and Ryan Maconachy encouraged on those sales, with funding from Wells Fargo.
Merrill Gardens has a long history with Welltower, which previously was called Health Care REIT. The 2 companies developed the very first RIDEA collaboration in senior living in 2010.
More recently, Merrill Gardens acquired the operating company Blue Harbor Elder Living from Fortress Investment Group in November 2019. That offer roughly doubled Merrill Gardens’ size, to more than 50 neighborhoods. In conjunction with the deal, previous Blue Harbor CEO Tana Gall ended up being president of Merrill Gardens, as her predecessor David Eskenazy left.
Likewise in Nov. 2019, Merrill Gardens partnered with ReNew REIT to acquire a 26-property assisted living and memory care portfolio from New Senior citizen Financial Investment Group (NYSE: SNR). Restore’s creator and CEO, George Chapman, was CEO of Health Care REIT in between 1996 and 2014.