Harrison Street has acquired its second medical office building in Calgary during the past three months, adding the 93,801-square-foot Seton Professional Centre to its portfolio.
The three-storey class-A property, built in 2016, is located directly across from Alberta Health Services’ South Health Campus, the primary acute care hospital in South Calgary.
It’s anchored by EFW Radiology, one of two major radiology practices in Alberta. Other tenants include medical practices, clinics, dentists, a pharmacy and child-care services.
“We are pleased to expand Harrison Street’s investment presence in the Calgary market, which faces an undersupply of high-quality medical office facilities, despite the market’s rapidly growing population,” Harrison Street managing director and head of Canadian transactions and business development Jonathan Turnbull said in the announcement.
“The Seton Professional Centre provides the only medical office building in the developing and affluent Seton submarket in South Calgary and will serve as a critical resource for residents of the community as well as patients of the adjacent AHS Hospital.”
Financial details were not disclosed.
The LEED Silver-certified Seton Professional Centre was built as part of Brookfield Residential’s master-planned Seton community, which is delivering new multiresidential, single-family and seniors housing as well as commercial and retail properties.
Seton includes parks, schools, the largest YMCA in the world, a library, shops and a fitness centre.
It’s the most recent winner of BILD Calgary’s Community of the Year honour.
Harrison Street’s other Calgary medical office building
Seton Professional Centre is Harrison Street’s 11th stabilized and operating Canadian property and its second medical office building in Canada.
The investment management firm, which is exclusively focused on alternative real assets, acquired the 125,000-square-foot South Calgary Health Centre from Nicola Wealth Real Estate in August.
That purpose-built medical office facility opened in 2003 and is located in the Sundance Place Business Park alongside other class-A offices and medical office buildings.
Alberta Health Services occupies more than 90 per cent of the property and provides a variety of services, including the operation of a diagnostic testing laboratory and one of two urgent-care centres in Calgary.
Canadian health-care spending is growing at close to a five per cent annual rate and outpacing population growth, according to Turnbull, so Harrison Street is interested in beefing up its Canadian medical office building portfolio.
The firm has invested approximately $9.2 billion in 377 medical office properties globally since its 2005 inception.
Canada Alternative Real Estate Fund
Harrison Street’s Canada Alternative Real Estate Fund has closed on investments valued at more than $750 million since launching in 2021.
The core-plus fund targets investments in seniors living, student housing, medical office, life sciences, storage and digital assets throughout Canada.
It seeks stabilized, cash-flow-producing properties and can invest up to 35 per cent of its equity in value-add strategies.
Chicago-headquartered Harrison Street also has offices in Toronto, London, San Francisco and Washington, D.C.
The firm has more than 240 employees and $53 billion in assets under management.