Harrison Street Real Estate Capital, a real estate investment manager, acquired Transwestern Securities Management, the REIT subsidiary of real estate investment firm Transwestern Investment, confirmed Christopher Merrill, Harrison Street co-founder, president and CEO.
Terms of the transaction, which closed Dec. 31, are not being disclosed. The addition of the REIT business brings Harrison Street's total assets under management to more than $2.7 billion.
The six employees of Transwestern Securities Management will establish a REIT business at Harrison Street, he said. Reagan Pratt and Jim Kammert, both principals and co-portfolio managers at Transwestern, will lead the REIT business and retain those titles at Harrison Street.
Harrison Street primarily offers closed-end value-added real estate funds investing in student housing, health care and storage. Expanding into REITs gives Harrison Street investors more liquidity at a time when public market real estate is growing, Mr. Merrill said.