CHICAGO – March 14, 2022 – Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, today announced it has sold a portfolio of eight medical office buildings valued at nearly $215 million across California. The properties were held across several of Harrison Street’s funds.
The portfolio totals 380,000 rentable square feet and is spread primarily across the San Francisco Bay area, with properties located both in the city as well as Santa Rosa, Daly City, Alameda, and Greenbrae, and two properties located in the Los Angeles neighborhood of Van Nuys. A majority of the properties are managed in a joint venture with Pinnacle Capital Management Services, a premier real estate investment, development, and management firm. Tenants include leading regional health systems such as Marin Health, Sutter Health, CommonSpirit Health, and Kaiser Permanente.
“The successful sale of this portfolio reflects Harrison Street’s deep sector experience, strong relationships with closely aligned quality operators, and our ability to build high-quality medical office portfolios through a combination of re-positioning, lease-up, and stabilized investment strategies in attractive, growing markets with strong demand drivers,”said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. “That Harrison Street can consistently build complex portfolios and close single-buyer transactions such as this one is a testament to the research and resources that drive value-creation to this vital sector for our investors and partners.”
Harrison Street is one of the most active and experienced real estate investors in the medical office sector. In 2021, Harrison Street closed 66 investments in the sector for a total cost of approximately $1.4 billion. Most recently, Harrison Street acquired 11 fully occupied medical office properties across Florida, Wisconsin, Illinois, Minnesota, North Carolina, and North Dakota from The Ryan Companies.
CBRE’s U.S. Healthcare & Life Sciences Capital Markets team represented Pinnacle in the transaction.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in San Francisco, London and Toronto, the firm has more than 210-employees and approximately $44 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street was awarded Best Places to Work by Pensions & Investments for seven consecutive years (2014-2020)and was recognized by PERE as the 2021 Alternatives Investor of the Year, North America and 2020 Global Alternatives Investor of the Year.