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Transactions: Harrison Street lands Chicago deal

On the heels of Colliers deal, private investor pays $240 million for eight MOBs

By John B. Mugford

The largest asset acquired as part of the DuPage Portfolio was the 95,000 square foot MOB at 430 Warrenville Road in Lisle, Ill. The price was $52 million, or $548 PSF, for the three-story facility completed in 2012. (Photo courtesy of CBRE)

It looks as if it’s business as usual for private equity investor Harrison Street Real Estate Capital – just as industry sources had predicted – in the aftermath of the Chicago-based firm’s sale of a 75 percent stakeof the company to Colliers International Group Inc. (NASDAQ and TSX: CIGI)  for $450 million.

Shortly after announcing the Colliers deal, , which closed last month, Harrison Street was right back to doing what it has done rather frequently since its founding in 2005: acquiring healthcare, student housing and apartment properties.

In its most recent healthcare real estate (HRE) acquisition, a sale-leaseback, the investor paid $240 million for a portfolio of eight suburban Chicago medical office buildings (MOBs), buying the properties from a physicians practice with an ambitious growth strategy: Downers Grove, Ill.-based DuPage Medical Group.

The information concerning the Harrison Street-DuPage deal comes by way of two commercial real estate research firms, Revista, based in Arnold, Md., and Real Capital Analytics (RCA) Inc., based in New York.

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