Arrimus Buys Student Housing Community, Adds Partner
In a deal arranged by CBRE, the company paid $63.7 million to acquire the Class A asset to acquire the Class A asset in Denton, Texas, from Parkland Development.
By Anca Gagiuc
Denton, Texas—Arrimus Capital of Newport, Calif., has acquired The Forum at Denton Station in Denton, Texas. The deal represents the company’s first institutional student housing purchase. According to a Yardi Matrix report, Arrimus paid $63.7 million for the asset to Parkland Development.
Arrimus Partner Chris Lee said the company obtained fixed-rate financing through Fannie Mae’s Green Globes program, which incentives environmentally sustainable multifamily investments. The 1,044-bed property is certified as a green property through the Green Globes rating system managed by the Green Building Initiative nonprofit. Yardi Matrix data shows the loan amount was in the value of $47.7 million.
The Forum at Denton Station is a 348-unit community located at 201 Inman St., near the University of North Texas and Texas Woman’s University. The two universities report projected enrollment numbers of roughly 40,000 for UNT and more than 15,000 for the Texas Woman’s University.
The Class A, 420,684-square-foot property comprises 14 three-story buildings and a diversified amenity package including a resort-style swimming pool with deck lounge, sand volleyball courts, indoor sports court for basketball and volleyball, outdoor grilling and picnic areas, as well as a 24-hour fitness center. The unit mix offers one- to four-bedroom floorplans ranging in size from 50,020 square feet to 226, 356 square feet. All units are fully furnished and come equipped with flat screen Smart TVs and full-sized in-unit washer/dryers.
Jaclyn Fitts and Casey Schaefer, both with CBRE’s National Student Housing team in Dallas, represented the parties in the transaction.
Concomitant with the acquisition news, Lee announced that Ryan Gahagan has joined the company as partner. Gahagan’s most recent title was managing director at Crossroads Capital Group in Newport Beach.
“Ryan’s addition to the management team coincides perfectly with our expansion into the student housing market,” Lee said in a prepared statement. “Together, we have developed a long-term growth strategy designed to be accretive for our investors that is independent of the broader real estate cycle. Student housing will play an important role in that strategy.”
Image courtesy of Arrimus Capital