Investment-management firm Harrison Street Real Estate Capital LLC (HSRE), which has extensive interests in “needs-based” real estate, including self-storage, has closed its latest fund, Harrison Street Real Estate Partners VI LP (Fund VI), after raising $950 million. The company beat its goal of $850 million and also raised $205 million through co-investment vehicles for a total of nearly $1.16 billion in purchasing power, according to a source.
Launched in the third quarter of 2016, Fund VI will invest in education, healthcare and self-storage. It has already committed $310 million across 34 properties in 17 states. HSRE is targeting a 15 percent net internal rate of return for the fund, a source reported.
In April, the company acquired 15 Trojan Storage properties in Arizona, California, Colorado and Minnesota for $116.8 million. The assets comprise 1.4 million square feet in 10,900 units. The transaction was the first major self-storage acquisition announced by HSRE since it raised $850 million in 2015 for its Harrison Street Real Estate Partners V LP fund.
Approximately 70 percent of Fund VI backing came from existing HSRE investors. In all, it received commitments from 65 institutional investors, according to a source.
HSRE is a real estate private-equity firm with more than $12.2 billion in assets under management through commingled funds and public securities products. The commingled funds focus exclusively on the education, healthcare and self-storage segments of the real estate market. Affiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.