By Becky Yerak | The
private equity firm co-founded in 2005 by former Motorola Inc. Chief
Executive Christopher Galvin has completed the first closing on its
third fund, which it plans to use to buy about $1.8 billion in real
estate assets.

Harrison Street Real Estate Capital LLC has raised $165 million to date
and plans to raise $500 million by year-end. That $500 million equates
to more than $1.75 billion in purchasing power, said Christopher
Merrill, co-founder and chief executive of the Chicago-based real estate
private equity firm.

Besides Merrill, Harrison’s three-member board consists of Christopher Galvin, co-founder and chairman of the firm, and his brother, Michael Galvin, Harrison co-founder and vice chairman.

Harrison focuses on properties it considers recession resistant, including off-campus student housing, senior housing, medical office buildings and storage properties.

Through May this year, the firm has made more than $250 million worth of new investments in the storage, student housing and senior segments. Investments in 2010 include a joint-venture with Extra Space for the acquisition of a portfolio of self-storage properties, the development of an off-campus student housing at Texas Tech and the acquisition of an off-campus student housing property at Indiana University.

With those investments from its first two funds, Harrison Street now owns and manages  178 real estate assets in 32 states valued at more than $2 billion. Specifically, it consists of 13,780 student housing beds, 3,615 senior housing living units, 60,990 self-storage units, 2,859 dry and wet boat storage and 857,936 square feet of medical office space.