Harrison Street Raises $1.15 Billion Fund, Eyes Senior Housing

June 29, 2017, Mary Kate Nelson, Senior Housing News - Harrison Street Real Estate Capital just announced another billion-dollar fund, which will be used in part on senior housing investments.  The Chicago-based private equity firm recently closed its sixth U.S. opportunistic real estate fund at $950 million in equity commitments, according to a press release.  Additionally, the firm raised $205 million of equity capital in co-investment vehicles.

The new fund—Harrison Street Real Estate Partners VI—has already committed $310 million across 34 properties in 17 different states.  Of that $310 million, $135 million has been put toward senior housing, a company spokesperson told Senior Housing News.  Property types and locations were not disclosed.  In addition to senior housing, the firm is focused on the education, storage, and health care sectors.

“Our differentiated, disciplined and rigorous investment approach, and deep focus on resilient sectors driven by favorable demographic trends, has generated exceptional risk-adjusted performance across cycles for our investors,” Harrison Street Co-Founder, President, and CEO Christopher Merrill said in the press release.

Harrison Street is no stranger to the senior housing space; the firm has partnered with The Engel Burman Group and The Northwind Group to purchase a $150 million, soon-to-be upscale senior living property on the Upper West Side of Manhattan, and the firm has raised several funds in the past, at least one of which topped $1 billion.

Overall, Harrison Street has invested $17.1 billion across 693 properties since its founding in 2005.