Colliers acquires 75% of Chicago real estate firm

Listen to this article

Colliers International Group Inc. has agreed to acquire 75% of Harrison Street Real Estate Capital LLC for $450 million.

Colliers, based in Toronto with offices throughout the United States, including Columbia, said it expects annual management fee revenue from the deal will be between $100 million and $115 million, according to a news release.

Chicago-based Harrison Street manages about $14.6 billion worth of assets, primarily in the senior and student housing, medical office and self-storage sectors. The company’s senior management team will continue to handle day-to-day operations and hold the remaining 25% of equity. An additional $100 million will be payable to the company in 2022 based on the achievement of performance targets.

“We were particularly attracted to Harrison Street’s focus on attractive real estate asset class strategies and its massive segments offering significant, demographically driven growth opportunities with defensive-cycle characteristics,” Colliers CFO John Friedrichsen said in a statement. “The recurring management fees offer Colliers another stable and recurring source of revenue.”

Harrison Street CEO Christopher Merrill said the company was seeking an outside investment partner to help with global growth.