Harrison Street Reportedly Raises $720M for Potential $2B Fund; Senior Housing a Target

Harrison Street has reportedly raised $720 million for a new fund to be invested in senior housing and other types of real estate.

The fund ultimately could raise up to $2 billion, according to a Nov. 17 filing with the Securities and Exchange Commission (SEC).

Chicago-based Harrison Street raised $720 million within 60 days and is targeting $1.5 billion for the fund, with a final close to occur in 2021, Private Equity Real Estate (PERE) reported Wednesday, citing an unnamed source with knowledge of the fund.

The fund will target life science and data center properties in addition to senior housing, according to PERE.

Harrison Street declined to comment to Senior Housing News.

This is the firm’s eighth opportunity fund. In Aug. 2019, the seventh fund closed with $1.6 billion in equity, and Harrison Street intended to deploy 30% to 40% in senior housing.

Founded in 2005, Harrison Street has invested more than $36 billion across various types of assets, with senior housing being a primary focus. The firm’s operating partners include Houston-based Belmont Village and Baltimore-based Brightview Senior Living.

In Dec. 2019, Harrison Street deepened its relationship with Brightview by acquiring an 11-community portfolio from PGIM Real Estate.

Senior housing transaction volume took a hit in 2020 as Covid-19 disrupted the market, which was poised for an influx of private equity following several large funds closing. 

Still, some notable deals have crossed the finish line this year: Kayne Anderson bought a medical office and senior housing portfolio from Welltower (NYSE: WELL) for about $1 billion, and AEW Capital Management and Merrill Gardens acquired a 10-property portfolio from Welltower. And, financial distress related to Covid-19 could result in more opportunities ahead.