Harrison Street raises $720M for life sciences real estate fund

Chicago-based firm collected amount in 60 days; target raise is $2B

Chicago /
Dec.December 17, 2020 01:51 PM
2430 North Halsted Street and Harrison Street's Christopher Merrill (Sterling Bay; Harrison Street)

2430 North Halsted Street and Harrison Street’s Christopher Merrill (Sterling Bay; Harrison Street)

In the Covid era, demand for life sciences properties continues to rise and investors are paying attention.

It took Harrison Street Real Estate Capital just 60 days to raise $720 million for its fund that will primarily invest in life sciences labs and data centers, according to Crain’s.

The Chicago-based firm raised the money as part of its eighth investment fund, which may also be used to purchase assets in health care and senior living, according to the report. Harrison Street has set the fund’s target raise at $2 billion.

Following the onset of the coronavirus, life sciences buildings became increasingly attractive to investors, as leasing demand rose from biotech and pharmaceutical companies.

In early December, Harrison Street cashed out on its investment in a spec research campus development in Cambridge, Mass., one of the country’s life sciences hubs. The properties in that complex were also valued at $720 million, Crain’s reported.

The life sciences sector has seen major deals across the country this year. Washington state recorded its largest-ever real estate deal this month when three life sciences buildings sold for $450 million in Seattle. Also in Massachusetts, Blackstone Group agreed to pay Brookfield Asset Management $3.45 billion for a life sciences real estate portfolio near the MIT campus.

[Crain’s] — Orion Jones


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