The SeniorCare Investor: Emeritus Swaps In For Merrill Gardens -

In Unexpected Move, Merrill Gardens Sells 20% JV Interest
 

For some people, 2010 may seem like a long time ago, but it was during that summer three years ago when two major events happened. The first thing was the beginning of some high-priced sales of quality assets at what were then considered to be aggressive cap rates, but which now most sellers would laugh at. We had just emerged from a very dark financial period and the markets were still unsettled, so both buyers and sellers were pleased with the subtle change in atmosphere: the former because “A” quality product was coming back on the market after a two- to three-year drought, the latter because pricing was starting to get aggressive and cap rates began to drop, although not as fast as they may have liked.

The second “event” was the $817 million joint venture inked between Merrill Gardens and Health Care REIT (NYSE: HCN) in one of the earliest so-called RIDEA transactions (REIT Investment Diversification and Empowerment Act of 2007). This was the deal that was often referred to as a “game-changer” for the seniors housing sector as well as for REITs, and it was followed by several billion dollars of other RIDEA transactions, many of which were completed by Health Care REIT in a series of deals from December 2010 through the first quarter ........Want to read more? Click here for a free trial to The SeniorCare Investor and download the current issue today