Pension System Sees Potential in New $500 Million Senior Housing Fund

Senior housing development has caught the eye of many new investors of late, due to the growing senior demographic and onset of new construction and development rising to meet its needs. 

And it has recently sparked the appeal of a Pennsylvania public school pension fund that plans to invest $100 million in the sector through the newest senior housing investment fund from Prudential Real Estate Investors (PREI), Senior Housing Partnership Fund V, according to documents filed by the pension fund.

The investment from the Pennsylvania Public School Employees’ Retirement System (PSERS) will contribute to the PREI Fund V, which has an anticipated size of $500 million, according to a letter sent by PSERS on behalf of Courtland Partners, Ltd., an institutional real asset advisor headquartered in Cleveland, Ohio. 

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The Fund’s investment strategy will employ a few different investment approaches, including making direct acquisitions in existing communities either directly or through investments in wholly-owned subsidiaries or joint ventures, says the letter signed by Steven Novick, principal and CEO of Courtland Partners. 

PREI’s fund intends to diversify by property type and will focus on investing in “for-rent, for-profit, private-pay independent living, assisted living, and memory care communities, as well as properties that offer a combination of the three.”

While a large majority of investments are planned for the U.S. senior housing market, the Fund may invest up to 20% of the fill commitment amount in investments outside of the country in Canada.

Senior Housing Partnership Fund V is the latest in a series of investment vehicles launched by PREI over the years. 

Last year, the group told SHN it was targeting “NFL cities” for its future senior housing investments.

Written by Jason Oliva

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