Cardinal Group JV Pays $76M for Charlotte Student Community
Inland Real Estate Group sold the property after almost 7 years of ownership.
Cardinal Group Cos., in joint venture with TPG Real Estate Partners has acquired Arcadia Student Living, a 765-bed property in Charlotte, N.C., for $75.5 million, using a $50.9 million acquisition loan funded by HSBC Bank USA public records show. Inland Real Estate Group sold the property, which had acquired in 2015 for $54.8 million, according to Yardi Matrix data.
Completed in 2015, Arcadia Student Living spans 23.2 acres and encompasses 39 buildings and 205 units with a mix of one- to five-bedroom floorplans, averaging 1,490 square feet. Community amenities include a fitness center with a steam room and sauna, a swimming pool with poolside grills and a computer lab.
The new owner plans to upgrade the unit interiors and refresh the common areas and amenities of the property, by improving the pool and courtyard areas, and adding new flooring and new equipment to the study rooms. Cardinal Group Management will manage the asset and Cardinal Group Construction will handle the community enhancements.
Located at 707 Sanctuary Place, Arcadia Student Living is within 1.5 miles of the University of North Carolina at Charlotte campus and within 2 miles of Jerry Richardson Stadium. The university ranked 83rd by total enrollment by 2020 numbers, Yardi Matrix data shows. On- and off-campus housing at the school accounted for an estimated 13,870 beds, with a capture opportunity for another 16,276 beds.
Numerous dining and retail areas, including Walmart Supercenter, Marshals and IKEA are within walking distance of the property. Several bus stations are next to the community, connecting it to Charlotte’s city center, which is 7 miles away.
Executive Managing Director of Investments Peter Katz of Institutional Property Advisors brokered the transaction and CBRE’s capital markets team arranged the acquisition financing.
Expanding the value-add student housing portfolio
TREP and Cardinal’s strategy is to acquire high-quality student housing portfolios, the transaction marking the partnership’s 14th acquisition in markets with strong fundamentals. With Cardinal Group’s operation platforms and capital improvements projects, the property will achieve full potential and become a premier one on the market, according to Andrew Dewispelaere, Acquisition Associate of Cardinal Group in a prepared statement.
TREP previously entered the student housing market in 2020 in partnership with Cardinal after acquiring an eight-property portfolio across five states for $478.7 million. At the end of last year, the companies also bought Millennium Norman, another 698-bed property in Norman, Okla., as part of their investment strategy.