Boca Raton, Fla.—A student housing portfolio comprised of University Park, University Square and University View in Boca Raton, Fla. was sold for $105.25 million. The portfolio was sold by a joint venture partnership of Rosemurgy Properties, Giles Capital Group and Lewis Rental Properties to a New York City-based institutional investor.
“When we entered into the joint venture with Lewis Rental Properties and Rosemurgy Properties, the owner of the original site of University Park, our plan was to build that project and sell it,” Rick Giles, president of Wellington, Fla.-based Giles Capital Group, told MHN. “The market is strong, the debt environment is favorable, and all that worked to our advantage.”
The portfolio represents the entire off-campus student housing market for three Boca Raton institutions of higher learning, Florida Atlantic University and Palm Beach State College of Boca Raton, both public institutions, and Lynn University, a private university. “We owned the entire market,” Giles said. “We saw this as a great opportunity to put this in the hands of another owner.”
Opened in April of last year, the 280,000-square-foot University Park at 135 N.W. 20th St. is the first purpose-built student housing project developed in Boca Raton. It features eight four-story buildings, 159 units and 598 beds.
The community that became University Square was originally called Boca Sol. Located at 200 N.E. 20th St., it was acquired two years ago, repositioned as student housing and rebranded. Its five two-story buildings offer 90 units and 128 beds.
University View is a building originally called Addison Park. Situated at 2190 N.W. 4th Court, it was acquired in March 2013 and rebranded as University View. It features 55 townhouse units with 165 beds.
The properties were managed by Park Partners Residential.
Giles reported that the joint venture fielded more than 10 offers from would-be buyers to purchase the portfolio. “The challenge was evaluating all the offers,” he noted. “Some of the offers were not for the entire portfolio. A big challenge was looking at all the variations [in the offers]. We preferred selling the entire portfolio to one buyer.”
“Student housing is an important component to the growing collegiate lifestyle in our community,” said Rosemurgy Properties’ CEO Alexander S. Rosemurgy. “Developing the first purpose-built student housing in Palm Beach county with University Park, and addressing the need for off-campus housing, is important for the continued growth of the three universities in Boca Raton.”
Giles added, “We are extremely proud of the efforts of our entire team. The sale of University Park marks the highest price paid per unit for a multifamily rental project in the state of Florida, as well as the highest price paid per bedroom for student housing in the state of Florida.”