Harrison Street sells student housing portfolio for about $1 bln

Harrison Street Real Estate Capital has sold a 22-property student housing portfolio to Scion Student Communities LP for about $1 billion. Scion Student Communities is a joint venture formed by The Scion Group, GIC and Canada Pension Plan Investment Board.


CHICAGO–(BUSINESS WIRE)–Harrison Street Real Estate Capital (“Harrison Street”), one of the largest real estate investment firms dedicated to the education, healthcare and storage sectors, today announced the sale of a 22-property student housing portfolio to Scion Student Communities LP, the joint venture formed by The Scion Group, GIC and Canada Pension Plan Investment Board (CPPIB) for approximately $1 billion.

The highly complex portfolio transaction comprises approximately 12,000 beds across 18 states and involves 20 leading national universities. The properties were owned by five different Harrison Street funds in conjunction with multiple operating partners.

“This transaction reflects Harrison Street’s strong overall track record in student housing and our ability to create value for our investors and partners by successfully transforming the portfolio,” said Christopher Merrill, Co-Founder, President & Chief Executive Officer of Harrison Street. “This portfolio demonstrates our longstanding strategy of acquiring single assets or development opportunities with substantial value-add potential in or near large, leading universities, making key improvements to increase tenancy, and attracting world-class partners. We continue to identify attractive investment opportunities and remain committed to providing the highest quality student housing facilities to universities across the U.S.”

In March 2017, Harrison Street announced it sold a portfolio of nine high-quality student housing properties to Scion Student Communities LP for $465 million.

Harrison Street is one of the largest private investors in the student housing market with over 73,000 beds throughout the U.S. and Europe. Since inception in 2005, Harrison Street has invested $18 billion across its portfolio strategies with over $9 billion across 232 properties in education and student housing assets alone. During this period, the firm has sold more than 96 student housing properties for a gross transaction value of $4.3 billion.

Peter Katz, Executive Managing Director of Marcus & Millichap’s IPA Student Housing Division, provided strategic consulting to Harrison Street on the transaction.

About Harrison Street Real Estate
Harrison Street Real Estate Capital LLC is one of the leading real estate investment management firms exclusively focused on the Education, Healthcare and Storage sectors. The firm has created a series of differentiated investment products across multiple risk/return strategies. Headquartered in Chicago with an office in London, the firm has 115 employees and has approximately $12.8 billion in assets under management. For more information, please visit www.harrisonst.com.