Commercial real estate brokerage Colliers is reorganizing and rebranding its investment management business, rolling several companies under the umbrella of Chicago-based alternative investment management firm Harrison Street.
Colliers on Wednesday announced that its investment management division will now be known as Harrison Street Asset Management, which will have more than $100 billion in assets under management.
Toronto-based Colliers is Canada’s largest real estate services firm and the world’s fourth-largest by revenue, behind CBRE, JLL and Cushman & Wakefield. In recent years, the firms have expanded businesses that provide consistent revenue separate from core brokerage functions such as advising on property sales and leases.
Harrison Street co-founder and CEO Christopher Merrill will add the title of global CEO and will become the largest shareholder in Harrison Street Asset Management, according to a statement. Harrison Street previously had about $55 billion in assets under management as of the first quarter of this year, according to that firm’s website.
The move brings Colliers-controlled companies Basalt Infrastructure Partners, Versus Capital, Rockwood Capital, and Colliers Global Investors together under Harrison Street’s oversight, with executives from those firms remaining in place, according to the statement.
Colliers co-Chief Investment Officer Zachary Michaud will become managing partner and global chief financial officer of the new venture. Current Harrison Street Chief Financial Officer Stephen Gordon will become a managing partner and chief operating officer.
Colliers has a longtime ownership interest in Harrison Street, buying a 75% equity stake in the firm for $450 million in July 2018. Merrill remained the company’s shareholder in that deal.
“We are excited to enter the next phase of growth,” Merrill said in the statement Wednesday. “By harnessing the expertise of our partners and teams across the platform, we aim to scale our capabilities and position Harrison Street as a premier global investment partner. With over two decades of leadership in alternative investment management across infrastructure, real estate and credit, we are well positioned to deliver innovative investment and capital solutions for our clients.”
Revenue boost
In May, Colliers reported a 16% increase in revenue, bolstered by growth in the firm’s engineering business, which offset a decline in first-quarter leasing.
Colliers’ investment management revenues during the first quarter were $126.2 million, up 3% from the same period a year earlier. Assets under management exceeded $100 billion for the first time in company history, according to a Securities and Exchange Commission filing.
“Harrison Street has an exceptional track record and some of the strongest leaders, partners and investment teams in the industry,” Colliers Global Chairman and CEO Jay Hennick said in the statement. “With an unwavering commitment to excellence and delivering outstanding results for investors — combined with the continued support of Colliers — we are building one of the world’s premier global alternative investment platforms.”
Harrison Street is a longtime investor in real estate sectors such as student and senior housing, medical and life science research facilities and self-storage. In recent years, Harrison Street has made major investments in other properties such as single-family rental homes and data centers.
The company is headquartered in the River Point office tower along the Chicago River at 444 W. Lake St., with the firm set to move to an office building in the late stages of construction a few blocks west in Fulton Market.
Harrison Street has funds and other investment options used by 900 institutional investors and more than 10,000 private wealth investors, according to the statement.