Prudential acquires assisted living, memory care portfolio in $110M transaction

Prudential Real Estate Investors (PREI) has acquired three assisted living and memory care communities in Tennessee and Connecticut for $110 million. It’s the first investment made through its Senior Housing Partners (SHP) V fund, according to the company.

The three Class A communities total 341,000 square feet across 391 units of recently constructed senior housing communities:

• The Hearth at Hendersonville, Hendersonville, Tenn., 130 units;
• The Hearth at Franklin, Franklin, Tenn., 126 units; and
• The Hearth at Glastonbury, Glastonbury, Conn., 135 units.

Hearth Management, which previously owned the property through a joint venture partnership, has been retained as the property manager.

“We are pleased to add the Hearth Portfolio, a high-quality senior housing portfolio with strong income potential, as the first investment for our SHP V portfolio,” Noah Levy, head of PREI’s senior housing business, said in a statement. “We look forward to partnering with Hearth Management, who are proven senior housing operators, to deliver attractive risk-adjusted returns for SHP V investors.”

PREI is the real estate investment and advisory business of Prudential Financial. Additional terms of the transaction were not disclosed.

Earlier this month, PREI announced it had raised $629 million in capital commitments for SHP V, the fifth in a series of dedicated, closed-end funds designed to capitalize on investment opportunities in the growing senior housing industry. The capital raised from U.S. public and corporate pension plan investors exceeded PREI’s $500 million target.

Lois Bowers

Lois A. Bowers was senior editor of I Advance Senior Care / Long-Term Living from 2013-2015.