Dealmaker: Harrison Street Closes $1.6B in Medical Office, Senior Housing Transactions

Harrison Street, Chicago, agreed to purchase 24 senior housing assets and sell 14 medical office properties across eight states for $1.6 billion.

DLA Piper, New York, advised Harrison Street on the transactions. DLA Piper Partner Shari Helft Lennon led the firm’s deal team, which also included Jesse Criz Allen Ashley, Skyler Anderson, Dayle Comerford, Claire Rucker, Benjamin Jacobs, Kaila Sergent, Josh Fintel, John Kim, Scott Josephson and Olu Ishmael.

Harrison Street agreed to acquire 24 Class A senior housing properties with 2,195 units across California and Nevada for $1.2 billion. It acquired 12 properties from Healthpeak Properties Inc., Denver, and 12 properties from Gallaher Cos., Windsor, Calif.

Michael Gordon, Global Chief Investment Officer at Harrison Street, said the senior housing sector remained resilient throughout the pandemic and is poised for growth. “Specifically, the assets we are acquiring are managed by a leading operator in Oakmont and located in attractive markets backed by solid demographics, high barriers to entry and historically high occupancy rates,” he said.

Additionally, Harrison Street agreed to sell a 14-property medical office portfolio to Healthpeak. The properties across Virginia, Illinois, Minnesota, New Jersey, Oregon, Texas and California total 833,000 square feet and traded for $371 million.

Harrison Street invests in senior housing, student housing, life sciences and storage real estate and had $32 billion in assets under management at year-end 2020.