Prudential Real Estate Investors acquired three assisted living and memory care communities in Tennessee and Connecticut on behalf of Senior Housing Partners (SHP) V for $110 million, the company announced today. The acquisition is the first investment for the newly launched fund. PREI is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE:PRU).

Additional terms of the transaction were not disclosed.

The three Class A communities, which comprise 341,000 square feet across 391 units of recently constructed purpose-built communities for senior housing, 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; and
  • 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 senior housing portfolio with strong income potential, as the first investment for our SHP V portfolio,” said Noah Levy, head of PREI’s Senior Housing business. “We look forward to partnering with Hearth Management, who are proven senior housing operators, to deliver attractive risk-adjusted returns for SHP V investors.”

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

On May 5, 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.

Prudential Real Estate Investors is the global real estate investment business of Prudential Financial, Inc. (NYSE: PRU). Investing in real estate on behalf of institutional clients since 1970, PREI today has more than 650 employees located in 19 cities around the world, and gross assets under management of $58.7 billion ($44.1 billion net) as of December 31, 2014. PREI offers to its global client base a broad range of real estate investment vehicles across the risk-return spectrum and geographies, including core, core plus, value-add, opportunistic, debt, securities, and specialized investment strategies. For more information, visit www.prei.com.

Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1 trillion of assets under management as of March 31, 2015, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.