The firm attributes the success of its first commingled discretionary fundraise to strong support from public pension plan investors, university endowment funds, public insurance companies and institutional limited partners. One of these investors, the New Jersey Division of Investment, cited the experience Froning and Schaller have amassed, in real estate investment careers dating back two decades, with Froning at one time serving as CEO of Fortress Investment Group's Holiday Retirement.

“The principals have been active in healthcare real estate since the 1990s and were directly responsible for growing multiple industry-leading platforms that owned or operated more than 50,000 senior living units and financed over $4.5 billion in healthcare properties,” according to a 2016 memorandum to the NJ State Investment Council. “Since founding Focus in 2009, the principals deployed $151 million of equity in 15 assets representing more than 2,000 senior living units.” The current Focus portfolio represents investments in 11 states, according to the memorandum.

Consistent with Focus' thesis, the NJ Division of Investment also were drawn to the sector's strong fundamentals. “The healthcare property sector is generally decoupled from the broader economy,” according to the division's memorandum. “Aging population and increased life expectancy drive increasing demand for quality seniors housing, and the sector continued to achieve positive rent growth and resilient occupancy through the depth of the recession.”

Another factor in favor of the Focus platform was its track record and its emphasis on current income: “Focus has invested as an operating partner for various real estate private equity and separate account managers,” according to the memorandum. In that capacity, realized investments in the firm's portfolio have generated 41.8% gross IRR and a 2.6x multiple of invested capital with an 8% current yield.

CHICAGO—Although it's been active in the sector since its formation eight years ago, Focus Healthcare Partners LLC has just closed its first discretionary fund at $312 million. With some help from institutional debt, Focus expects that its Focus Senior Housing Fund I LP will invest $900 million into seniors housing assets over the next several years. The new vehicle will target properties that provide private pay independent living, assisted living and memory care services to senior citizens across the continental United States.

“Seniors housing represents one of the most compelling sectors in the United States,” says founding principal Curt P. Schaller. “with its clear and compelling demographic story and high levels of fragmentation, we see significant opportunities to acquire properties at attractive risk adjusted returns.”

Focus has been taking advantage of these opportunities since Schaller and Paul A. Froning established the private real estate investment firm in 2009. The firm has acquired more than $400 million of seniors housing assets from coast to coast in partnership with several institutional investors.

“We are fortunate to have developed relationships with investors who share our vision for investing in seniors housing,” says Froning. “We have built our success by focusing first and foremost on how we can improve the resident experience.” He adds, “with aggressive asset management and physical improvement to the properties we acquire, we aim to maximize quality of life for seniors and increase the value our properties afford them.”

The firm attributes the success of its first commingled discretionary fundraise to strong support from public pension plan investors, university endowment funds, public insurance companies and institutional limited partners. One of these investors, the New Jersey Division of Investment, cited the experience Froning and Schaller have amassed, in real estate investment careers dating back two decades, with Froning at one time serving as CEO of Fortress Investment Group's Holiday Retirement.

“The principals have been active in healthcare real estate since the 1990s and were directly responsible for growing multiple industry-leading platforms that owned or operated more than 50,000 senior living units and financed over $4.5 billion in healthcare properties,” according to a 2016 memorandum to the NJ State Investment Council. “Since founding Focus in 2009, the principals deployed $151 million of equity in 15 assets representing more than 2,000 senior living units.” The current Focus portfolio represents investments in 11 states, according to the memorandum.

Consistent with Focus' thesis, the NJ Division of Investment also were drawn to the sector's strong fundamentals. “The healthcare property sector is generally decoupled from the broader economy,” according to the division's memorandum. “Aging population and increased life expectancy drive increasing demand for quality seniors housing, and the sector continued to achieve positive rent growth and resilient occupancy through the depth of the recession.”

Another factor in favor of the Focus platform was its track record and its emphasis on current income: “Focus has invested as an operating partner for various real estate private equity and separate account managers,” according to the memorandum. In that capacity, realized investments in the firm's portfolio have generated 41.8% gross IRR and a 2.6x multiple of invested capital with an 8% current yield.