The Real Deal Chicago

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
June 20, 2018 04:00PM

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