Harrison Street, the Chicago-based education, healthcare and storage real estate-focussed firm has brought its fundraising total to $330 million for its latest private equity real estate fund
The firm said it had held the second close within three months of its first. Harrison Street aims to finally close the vehicle by the end of the year, aiming for a total of $500 million commitments. It added that, with leverage, the fund should have a purchasing power of $1.75 billion.
This is the third private equity real estate fund raised by Harrison Street, which typically acquires real estate assets such as off-campus student housing, senior housing, medical office buildings and storage facilities.
Christopher Merrill, co-founder, president and chief executive officer, said the fund had attracted new LPs to the firm in addition to those who invested in its first two funds. Investors included US and European corporations and pension funds, foundations, family offices and endowments. Among the new investors were US state and corporate pension funds.
Harrison Street has invested more than $250 million in its target asset classes, including in a joint venture with Extra Space for a portfolio of self-storage units as well as the development of student housing at Lubbock-based Texas Tech University on behalf of the first two funds.
Merrill said: “Fund III will continue on with the strategy we have implemented since our founding.” He added a future pipeline of investments had been identified.