Harrison Street Sells $600M Health Care Portfolio

The 27-property portfolio is nearly 100 percent leased, with 1.2 million square feet across 10 states

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Alternative asset investment firm Harrison Street has unloaded a national health care real estate portfolio for $600 million. NorthWest Healthcare Properties acquired the 27-property portfolio totaling 1.2 million square feet across 10 states. 

JLL announced the deal and marketed the portfolio for Harrison Street. 

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The properties are 97 percent occupied with health care tenants that include Advocate Aurora Health, Rush University Medical Center, Memorial Hermann and Ascension. The portfolio includes 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital. They are located in Arizona, California, Colorado, Florida, Illinois, Indiana, Massachusetts, Minnesota, Oklahoma and Texas.

JLL’s Mindy Berman, Evan Kovac, Andrew Milne, Brian Bacharach, Tim Joyce, Brannan Knott, Trent Jemmett and CJ Kodani represented the seller in the deal. It wasn’t immediately clear who represented NorthWest Healthcare.

Health care assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords,” Berman said.

Chicago-based Harrison Street, which has $44 billion in assets, has invested across senior housing, student housing, health care delivery, life sciences and storage real estate. Real estate investment trust NorthWest owns $10 billion of assets in 224 health care properties around the world. 

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.