Harrison Road has introduced the ultimate shut of its new Harrison Road Actual Property Companions IX, L.P. fund, with greater than $2.5 billion in capital commitments raised.
The fund, which Harrison Road famous has greater than $7 billion in shopping for energy all informed, will goal a wide range of product varieties, which incorporates scholar housing, senior housing and knowledge facilities amongst its largest targets.
The remainder of the fund will “focus totally on buying well-located however underperforming property, in addition to these with strained capital buildings in want of liquidity, providing distressed pricing,” in keeping with a press launch concerning the transfer.
Harrison Road is enterprise the fund partially to deal with what it sees as “traditionally low ranges of latest provide throughout focused sectors, the place rising demand helps the necessity for extra stock.” Senior dwelling is one such sector the place demand for providers is at the moment eclipsing the variety of open communities.
The variety of building initiatives in comparison with complete stock within the third quarter of 2024 was simply 1.1% larger than in the identical interval in 2023, representing the bottom quantity of building the senior dwelling trade has seen in a decade.
Harrison Road is a present capital accomplice to firms together with Brightview Senior Dwelling. In September, the corporate purchased 5 communities managed by the Baltimore-based senior dwelling operator. Harrison Road acquired nearly a dozen communities from Brightview in 2019 in an analogous method.
The fund shut is going on amid “a persistent and noticeable investor rotation from conventional actual property into various sectors, a pattern that has accelerated in its trajectory lately,” in keeping with Rob Prepare dinner, senior managing director at Harrison Road and the fund’s portfolio supervisor.
“With Fund IX, we proceed to be centered on deploying strategic capital that leverages our skilled workforce, deep relationships, and constant dedication to danger administration to create high-quality and resilient portfolios throughout various actual property sectors that meet the rising investor demand,” Prepare dinner stated. “As a frontrunner in options, we’re distinctly positioned to create scale throughout these sectors and manufacture portfolios that showcase core traits at a time after we consider working fundamentals are the strongest that now we have seen in a long time.”
Harrison Road has to this point raised about $30 billion in fairness. The corporate’s investments have included 42,000 senior housing items in that point. Right now, the corporate is among the many largest homeowners of senior housing communities within the U.S.
