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16 June 20215 minute read

DLA Piper advises Harrison Street on US$1.6 billion medical office and senior housing transactions

DLA Piper advised Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, on an integrated series of transactions through which Harrison Street agreed to purchase 24 senior housing assets and sell 14 medical office properties across eight states over numerous months for a total transaction value of approximately US$1.6 billion.

Harrison Street has agreed to acquire a portfolio of 24 Class A senior housing properties focused on assisted living and memory care, consisting of 2,195 units across California and Nevada, for approximately US$1.2 billion. Twelve properties were acquired from Healthpeak Properties, Inc.(“Healthpeak”) and are operated by Oakmont Management Group and twelve properties are being acquired from Gallaher Companies and are also operated by Oakmont Management Group.

Harrison Street has also agreed to sell to Healthpeak a 14-property medical office portfolio with 833,000 square feet across Virginia, Illinois, Minnesota, New Jersey, Oregon, Texas and California for approximately US$371 million. The properties were held across Harrison Street’s Core Fund and US Opportunity Funds..

Harrison Street is one of the most active real estate investors in healthcare, continuing to expand activity in senior housing, medical office, behavioral health, life sciences and hospital infrastructure sectors. Since inception, the firm has closed 552 assets within the healthcare sector for a total cost of approximately US$19.5 billion.

“We were pleased to bring to bear our extensive real estate capital markets experience, as well as a strong cross-disciplinary team, to advise Harrison Street on this incredibly complex series of transactions, which have positioned our client well for continued success,” said Shari Helft Lennon, the DLA Piper partner who led the firm’s deal team.

In addition to Helft Lennon (Chicago), the DLA Piper team advising Harrison Street included partners Jesse Criz, and Allen Ashley (both of Chicago) and the following associates, of counsel and attorneys: Skyler Anderson (San Diego), Dayle Comerford, Claire Rucker, Benjamin Jacobs, Kaila Sergent, Josh Fintel (all of Chicago), John Kim (Los Angeles), Scott Josephson and Olu Ishmael (both of Chicago).

DLA Piper's Real Estate Capital Markets team offers clients practical and innovative solutions to their evolving real estate capital markets needs. The firm has been at the forefront of the development of sophisticated real estate capital markets structures, focusing on REITs, real estate funds and institutional investors and lenders in the real estate industry. Backed by one of the largest real estate teams in the world, the Real Estate Capital Markets group offers world-class international reach, depth of experience and dedication to client service.