Harrison Street holds $465m first close on Fund IV

After being in the market for only a handful of months, Harrison Street Real Estate Capital has raised 75 percent of its target for its fourth real estate opportunity fund, PERE has learned.

According to sources familiar with the matter, the Chicago-based real estate investment firm has garnered $465 million in equity commitments for Harrison Street Real Estate Partners IV, which is targeting $600 million in commitments and has a hard cap of $700 million.

Harrison Street is seeking contributions from US and European pension plans, insurance companies, endowments, foundations and family offices. Some investors in the new vehicle include the Kansas Public Employees Retirement System, which contributed $40 million to Fund IV, and the San Francisco Employees Retirement System, which committed $50 million. 

A final close for Fund IV is anticipated sometime near year's end. Representatives from Harrison Street declined to comment.

Fund IV’s investment strategy is consistent with that of Harrison Street’s prior funds. Through the vehicle, the firm will invest in off-campus student housing, senior housing, medical office buildings and storage properties across the US. 

In June 2011, Harrison Street Real Estate Partners III received more than $595 million in commitments, exceeding its original $500 million target. Prior to Fund III, Harrison Street raised $208 million for Fund I and $430 million for Fund II.