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arrison Street Capital Partners is capitalizing on the demand for student housing, senior housing, and data centers. The Chicago-based firm recently closed a $2.5 billion investment fund focused on these asset classes, with 70% of the capital already deployed. The remaining funds will be used to acquire underperforming assets or those with strained capital structures at discounted prices.

    The news comes as interest rates have fallen for the first time since the pandemic, making it more attractive for investors to put money into real estate development. Harrison Street's initial investments were in developments, including a student housing complex at the University of Wisconsin that was fully leased before completion. Student housing and data centers have been particularly popular among developers and investors due to growing demand from cloud storage and artificial intelligence.

    Major firms like Blackstone, Brookfield, and KKR have also invested heavily in these sectors. The senior housing market is growing, but at a slower pace than student housing and data centers. Harrison Street's new fund, with $7 billion in spending power, has attracted investors including public pension plans, sovereign wealth funds, and insurance companies.

    Another Chicago-based firm, Waterton, recently closed a $1.73 billion investment fund focused on multifamily value-add investments.