Harrison Street Grows Student Portfolio by $800 Million

by Katie Sloan

Chicago — Investments were made on behalf of two funds.

Harrison Street has made several investments in Campus Crest Communities.Chicago  — Harrison Street Real Estate Capital (HSRE) recently closed on a 235-bed student housing property, Stadium Village Flats, at the University of Minnesota in St. Paul, Minn., which was developed by The Opus Group. The real estate investment manager is also developing a 584-bed property, The Grove at State College, at Penn State University in State College, Penn.

With these acquisitions, which are included among 12 properties equating to more than $400 million during 2012, HSRE says it is the third-largest owner of student housing projects in the United States.

These investments were made on behalf of two of Harrison Street’s commingled product lines, Harrison Street Core Property Fund, LP and Harrison Street Real Estate Partners III, L.P.

According to Christopher Merrill, co-founder, president and CEO of HSRE, “We still have another seven student housing assets under the contract that are scheduled to close in the coming months. With these new investments, we expect that during 2012 we will have made investments in 20 projects with a combined value of over $800 million.”

“These additions to HSRE’s student housing portfolio make HSRE one of the top owners of student housing properties in the country,” he added. “By year-end 2012, Harrison Street’s total student housing portfolio is expected to exceed 30,000 beds with a value reaching $2 billion.”

Harrison Street systematically set up its business to invest in three areas: education, healthcare and storage. Student housing as with senior housing, medical office and storage is something Merrill says he sees as a long term investment market, not a short-term, make-a-trade sector to enter and leave the business.

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