Chicago — Harrison Street has sold two student housing portfolios totaling over 23,000 beds for a combined $1.9 billion.
The Chicago-based firm sold a 12-property portfolio totaling 8,182 beds to Global Student Accommodation (GSA) and a 25-property portfolio totaling 15,817 beds to a joint venture affiliated with The Scion Group. Both transactions were brokered by Peter Katz and Institutional Property Advisors (IPA) Student Housing.
The portfolio sold to GSA — which includes The Hub at Tucson near the University of Arizona — is located across 12 university markets. The communities were owned by three distinct Harrison Street funds and four co-investment vehicles. GSA’s operating partner, Yugo, will provide management and oversight of the portfolio.
Wells Fargo Bank provided financing for the senior acquisition loan, which was arranged by TSB Capital Advisors on behalf of GSA, with legal and tax advice provided by Greenberg Traurig.
The portfolio acquired by a joint venture affiliated with Scion is located across 19 university markets and was owned through four separate Harrison Street funds and three co-investment vehicles.
“The two large-scale transactions reflect Harrison Street’s longstanding strategy of acquiring or developing individual assets at leading universities, executing on defined business plans and exiting via strategic portfolio sales,” says Christopher Merrill, co-founder, chairman and CEO of Harrison Street.
“GSA and Scion are among the world’s most sophisticated and well-respected real estate investors and operators, and these dispositions are emblematic of our strong student housing track record and ability to create value for our investors and partners.”
As of Sept. 30, Harrison Street had acquired $1.4 billion worth of student housing assets in 2021 near institutions including Arizona State University, Cornell University, University of North Carolina and University of Calgary.
—Katie Sloan