Harrison Street Raises $1.6B for Opportunistic Fund

CHICAGO—Harrison Street has raised $1.3 billion in its final close of the firm’s 7th US opportunistic real estate fund. The fundraising exceeded the original $950 million target. In addition, Harrison Street raised an additional $302.5 million in co-investment vehicles to invest alongside the fund for a total of $1.6 billion of equity raised and total buying capacity of approximately $4 billion.

Like Harrison Street’s other funds, Fund VII will provide capital to assets across the senior housing, healthcare, student housing, life sciences and storage sectors. Fund VII has committed 26% of its equity capital and expects more than half of the portfolio to be comprised of senior housing, healthcare delivery and life science investments as demand drivers include an aging population that continues to live longer.

Over 60 global institutional investors committed to Fund VII. Harrison Street received significant support from existing investors who contributed nearly 65% of the total committed capital to the fund, in addition to new limited partners.

Since its inception in 2005, the firm has invested in 957 properties across 47 states with a gross cost of $28.1 billion. Harrison Street is currently investing through its US and European Opportunistic fund series as well as its Core real estate and Social Infrastructure open-end funds. To date, Harrison Street has raised nearly $16 billion in discretionary capital from over 375 investors throughout the world.