Harrison Street expands suburban medical office portfolio

The $240M acquisition comes as Collier’s buys a stake in the private-equity firm for as much as $550M

Jun.June 20, 2018 04:00 PM

430 Warrenville Road Lisle and Harrison Street cofounder Christopher Merrill

Harrison Street Real Estate Capital bought a suburban medical office building portfolio for $240 million, a major purchase a month after Colliers International Group acquired a 75 percent stake in the firm.

Harrison, the Chicago-based firm, acquired the eight building-portfolio totaling 439,000 square feet from the DuPage Medical Group, according to county property records cited by Crain’s.

The deal includes properties in Naperville, Lisle, Bloomingdale, Glen Ellyn, Lombard, Joliet and Tinley Park.

In the Tinley Park deal, Harrison Street paid $29.5 million for the 71,000-square-foot building at 17495 South LaGrange Road.

Harrison Street oversees a $14.6 billion portfolio that also includes senior- and student housing, and self-storage. In May, Colliers agreed to pay $450 million for a 75 percent stake in Harrison Street, a deal that could be worth an additional $100 million based on the firm’s performance.

Medical office buildings are popular with some investors who believe the sector’s prospects are good as the population ages and more people need medical care. The biggest property to change hands in the DuPage Medical deal was a 95,000-square-foot building at 430 Warrenville Road in Lisle that Harrison Street bought for $52 million. [Crain’s] — John O’Brien

Related Articles

Thor Equities CEO Joe Sitt and a rendering of 800 West Fulton Market (Credit: SOM)

Thor Equities lands $144M construction loan for new tower

Flexport CEO Ryan Petersen and 333 N. Green Street (Credit: Getty Images, Sterling Bay)

Sterling Bay inks tech firm to latest lease at Fulton Market HQ

Chicago Skyline (Credit: iStock)

Windy City’s real estate blown away by other cities

President Donald Trump, Trump International Hotel & Tower 401 N. Wabash Avenue and Cushman & Wakefield CEO Brett White (Credit: Getty Images, Cushman and Wakefield)

Trump Tower has new leasing broker for failing retail space

Ald. Daniel La Spata (1st) and 2620 Hirsch Street in Humboldt Park (Credit: Google Maps)

RBH Group faces setback in its Teachers Village resi project

Freehand Hotel and Queensgate Investment Company CEO Jason Kow

Queensgate lands $44M acquisition loan on hip Freehand Chicago hotel

The Ramova Theatre and Ald. Patrick Daley Thomson (11th) (Credit: iStock)

A real estate encore for the Ramova Theatre

Oakbrook Terrace Tower at 1 Tower Lane and Blackstone's Jon Gray (Credit: Google Maps, Getty Images)

Blackstone Group notches big real estate win in Chicago suburbs