Blackstone, Landmark Properties Launch $784M Student Housing JV
The joint venture is targeting assets near top universities with rising enrollments.
Student housing developer and owner-operator Landmark Properties has entered into a $784 million joint venture with Blackstone Real Estate Income Trust, Inc., an affiliate of global private equity fund Blackstone. The purpose of the joint venture is to purchase eight student housing properties totaling 5,416 beds across the U.S. The transaction brings Landmark’s portfolio to a total of 79 student housing communities.
The anticipated investment over the next several months is a response to the growing confidence in student housing, and the attractiveness of the asset class to institutional investors.
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In a statement, a Blackstone official noted student housing situated in leading markets and featuring high-quality amenities that today’s student housing demand provides a robust investment opportunity, particularly when managed to an institutional standard.
Acting as financial advisor to both Landmark Properties and BREIT was TSB Capital Advisors.
Flight to quality
The recapitalization follows on the heels of Landmark Properties launching construction on three new properties: The Standard at Philadelphia, The Standard at Bloomington and The Standard at Columbia. The properties respectively are adjacent to or near the campuses of University of Pennsylvania and Drexel University, Indiana University and the University of South Carolina.
Earlier this month, Landmark teamed with another company to acquire a student housing property near Clemson University.
The developments are anticipated to add more than 2,500 new beds to Landmark’s portfolio. First student move-ins are expected in 2023. The additions brought to 20 the number of new student housing developments Landmark has announced since early 2020. Those 20 properties represent more than 14,000 beds and $3.8 billion.
The interest in housing near the above universities is reflective of a recent investor flight to quality favoring large Power 5 state-supported and Tier 1 schools.