CHICAGO — Harrison Street Real Estate Capital (HSRE) has launched the Harrison Street Core Property Fund, the first open-end core fund dedicated exclusively to investing in the demographically driven education, healthcare and storage properties, making it the largest real estate manager focused on these sectors in the United States.
“The core fund has already received subscriptions of more than $200 million from limited partnerships, which include both the Texas Municipal Retirement System and Kentucky Retirement Systems,” said Christopher Merrill, co-founder, president and CEO of Chicago-based HSRE, in a prepared statement.
The core fund recently acquired the 1,527-bed Sterling Central Apartments, a student housing community located adjacent to the University of Central Florida in Orlando. The property is 98 percent occupied, and includes two 3,000-square-foot clubhouses, two fitness centers, two computer centers, four pools, tanning, a screening room and a shuttle to campus.
HSRE stated that it established the fund to capitalize on the experience and knowledge it has gained as the largest owner/manager focusing on investing in these segments of the real estate market. The company believes it will benefit from the relationships it has formed with more than 30 local and regional operating partners who are the domain experts in day-to-day property management and leasing of student housing, seniors housing, medical office and storage properties.
In a prepared statement, Joey Lansing, the core fund’s portfolio manager, said, “Based on many factors, including the way HSRE’s assets held up during the recent downturn, especially when compared to the volatility in returns and valuations experienced in more traditional core asset types, we believe that we will be able to generate attractive absolute and relative returns primarily focused on current income coupled with long-term appreciation from owning stabilized education, healthcare and storage assets.”
— Savannah Duncan