Harrison Street Real Estate Capital (“HSRE”) has completed its third real estate private equity fund, Harrison Street Real Estate Partners III, L.P. (HSREP III).
The firm said exceeded its original goal of $500 million, receiving $595 million total. Investors in the fund include U.S and European pension funds, insurance companies, endowments, foundations and family offices.
The Fund already has invested more than 25 percent of the fund’s commitments in 24 real estate assets. This third fund follows on the momentum of Fund I and Fund II, which raised $208 million and $430 million, respectively. Since the initial fund was launched in August 2006, the firm has raised over $1.2 billion in third party equity capital. The firm does not use a placement agent when raising capital.
The firm puts its investments into the education, healthcare, and senior housing segments of the US real estate market.
HSREP III, LP held its first closing last summer with a goal of raising $500 million and limited the Fund to its hard cap of $600 million. According to Merrill, the $595 million in equity raised by the firm translates to investment power of over $2.0 billion, when leverage is applied. To date approximately $530 million of gross real estate investments in the fund have been made in 24 properties around the US.
Some of the investments already made include six assisted living alzheimer’s care facilities around the Washington, D.C. market that combined are 90% occupied. In addition, two senior housing communities in Oregon and Montana totaling 350 private-pay rental units.
A 120-unit senior housing development in an affluent suburb of Houston, TX. Upon completion, in late 2012, this property will offer 85 units of assisted living and 35 units of Alzheimer’s space;