Prudential Acquires Seniors Housing Portfolio in Tennessee, Connecticut for $110M

by Jeff Shaw

NASHVILLE, TENN. AND GLASTONBURY, CONN. — Prudential Real Estate Investors (PREI) has acquired three assisted living and memory care communities in Tennessee and Connecticut for $110 million. Hearth Management, which previously owned the property through a joint venture partnership, has been retained by PREI as the property manager.

The acquisition is the first investment for Senior Housing Partners (SHP) V, PREI’s newly launched fund focusing on seniors housing properties. PREI is the real estate investment and advisory business of Prudential Financial Inc. (NYSE: PRU). Investment advisory firm Blueprint Healthcare Real Estate arranged the financing.

The three Class A communities, which comprise 341,000 square feet across 391 units of recently constructed communities for seniors, include:

– The Hearth at Hendersonville located in Hendersonville, Tenn., northeast of Nashville, which opened in April 2012 and has 130 units;

– The Hearth at Franklin located in Franklin, Tenn., southwest of Nashville, which opened in October 2014 and has 126 units;

– The Hearth at Glastonbury located in Glastonbury, Conn., southeast of Hartford, which opened in September 2014 and has 135 units.

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

On May 5, PREI announced it had raised $629 million in capital commitments for SHP V, the fifth in a series of closed-end funds designed to capitalize on investment opportunities in the seniors housing market.

Investing in real estate on behalf of institutional clients since 1970, PREI has more than 650 employees located in 19 cities around the world, and gross assets under management of $58.7 billion, as of Dec. 31, 2014.

Prudential Financial is a financial services leader with more than $1 trillion of assets under management as of March 31, 2015. The company has operations in the United States, Asia, Europe and Latin America.

Prudential Financial’s stock price closed at $84.76 per share on Wednesday, May 27, up from $83.11 per share one year ago.

— Haisten Willis

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