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Harrison Street holds second close on $240m

The Chicago-based private equity firm holds a second-close on its latest real estate fund targeting recession-resistant investments.

Harrison Street Real Estate Capital has held a second close on its latest real estate fund, Harrison Street Real Estate Partners II, with $240 million (€155 million) in commitments, according to people familiar with the matter.

The Chicago-based firm – which held a first close on the fund in March – is targeting $300 million and is expected to hold a final close in the summer. The firm is focused on recession-resistant property sectors including real estate related to education, healthcare and storage.

According to Harrison Street’s web site, the firm targets sectors where there are large government, university, hospital and private sector commitments, such as found in student housing and senior housing, and in storage sectors such as marinas with wet and dry slip storage.

Founded by brothers Christopher and Michael Galvin, grandsons of the Motorola founding fathers, and Christopher Merrill, a former partner at investment firm Heitman, Harrison Street takes its name from the street where Motorola started its life in Chicago in 1928.

One of its latest deals was a $75 million joint venture with Campus Suites to develop a 960-unit university student housing complex at the Arizona State University, in Phoenix. The JV is valued at around $200 million. Harrison Street Real Estate Partners closed in June last year on $208 million with commitments from more than 30 institutional investors and high-net-worth individuals.