Investing in non-traditional real estate with attractive, steady and defensible demand drivers

The cycle-resilient user demand for Harrison Street’s target real estate sectors are derived from demographic trends: an aging population that continues to grow and live longer; increasing college enrollments; and a more mobile population. Additionally, these highly-fragmented asset classes generally have short-term leases, which the Firm believes can be beneficial in inflationary environments, allowing rents to re-price more frequently.

Long-tenured investor in alternative real estate sectors across the risk-return spectrum

US Opportunistic Fund Series
Launched in 2006, the opportunistic fund series has completed over $31 billion of gross investments (over 869 assets) since inception and disposed of 531 properties with a gross cost of nearly $12 billion. The fund series’ investment focus is to create a diversified portfolio of assets in demographic-driven real estate. The funds seek to create value through the acquisition, development, redevelopment and/or repositioning of assets in the target sectors in partnership with strong operating partners.

The fund series has invested in nearly 117,000 student housing beds, over 29,500 senior housing units, 12 million square feet of medical office space, nearly 5.6 million square feet of life sciences, over 500MW of data center capacity, more than 4,000 build-to-rent units and nearly 123,000 storage units. The following provides a summary of the fund series: 

FundVintage YearFund StatusFund Size
Fund I2006Fully liquidated$208 million
Fund II2008Fully liquidated$432 million
Fund III2010Fully liquidated$596 million
Fund IV2013Disposition phase$750 million
Fund V2014Disposition phase$850 million
Fund VI2016Disposition phase$950 million
Fund VII2019Value creation phase$1.3 billion
Fund VIII2021Investment period$2.0 billion

US Core Fund
Launched in 2011, Harrison Street’s Core Fund was created to provide investment in stabilized, cash-flow producing real estate with demographic-driven demand. The fund invests in student housing, both on and off campus, and other education-related real estate investments; senior housing including independent living, assisted living and memory care communities; medical office buildings and other healthcare-related real estate investments; life sciences buildings and storage properties.

Since its inception, the fund has consistently produced an attractive distribution yield. The fund is valued over $14 billion and consists of a diversified portfolio of 396 properties.

European Opportunistic Fund Series
Harrison Street has invested nearly €4.5 billion in over 18,000 student housing beds, over 4,500 specialty residential units and 2.1 million square feet of life sciences throughout Europe. The following provides a summary of the fund series:

FundVintage YearFund StatusFund Size
Fund I2015Fully liquidated€235 million
Fund II2017Disposition phase€500 million
Fund III2019Investment period€655 million

Canada Alternative Fund
Launched in August 2021, Harrison Street’s alternative real estate open-end fund will provide investment in stabilized, cash-flow producing real estate with demographic-driven demand across Canada. The fund will invest in high-quality senior living, student housing, medical office, life sciences, storage and digital real estate assets. The fund has closed on 11 assets including: eight senior housing communities in the Greater Toronto Area and downtown Calgary, two student housing properties at the University of Calgary and the University of Ottawa and one Class-A medical office building in Calgary.

“Harrison Street’s research-based approach to investing across established and emerging alternative European real asset sectors draws from our deep sector expertise, extensive partner relationships and unwavering commitment to innovation. As first movers in demographic-driven, needs-based real estate investing in the U.S., we are able to identify and pursue unique European opportunities across our core sectors and create differentiated investment solutions to help our sophisticated clients achieve their objectives.”

Paul Bashir, CEO EUROPE