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Harbert Management co-heads discuss senior housing outlook
The seniors housing team has been investing for 15 years and raised $210 million in 2016 and $510 million in 2020.
Trent Johnson and Brian Landrum, senior managing directors and co-heads of Harbert Management Corporation’s seniors housing team, spoke with Commercial Observer about how the asset class has changed and what the firm is targeting next. Harbert Management is an $8 billion alternatives asset manager founded in 1993, and its seniors housing group has been investing for 15 years.
Johnson said he began investing in seniors housing in 2012 after starting in a legal background and later moving into real estate investment and management. He described being recruited to lead a seniors housing platform in Dallas, where he joined forces with Landrum, who said he started investing in the space in 2009 at Walton Street Capital before teaming with Johnson in 2012 and moving to Harbert in 2015.
The pair also discussed Harbert’s capital-raising track record in the seniors housing space. Commercial Observer reports the group raised a $210 million investment fund in 2016 and a $510 million fund in 2020, and it is now pursuing its third fundraise.
Landrum tied demand prospects to generational shifts, noting that the oldest Baby Boomers in the United States are turning 80 this year and that this customer base is driving changes in how senior housing is designed and marketed compared with the industry’s earlier focus. He said the product has been rapidly changing over the past decade and a half as the cohort moving through the asset class has evolved.