GMH Acquires Kentucky Student Housing

The Stretch, a 170-unit, 533-bed student housing community serving the University of Kentucky in Lexington, has sold to GMH Communities. The seller was a joint venture between Tramview Capital Management and Campus Advantage.

The community is situated less than a mile from campus at 1051 Red Mile Rd. It features two-, three- and four-bedroom units averaging 1,155 square feet.

The Stretch, completed in 2009, features amenities including a clubhouse, pool, hot tub, fitness center, basketball/pickleball court, volleyball court, study rooms, tanning salon and outdoor grilling areas.

Students are in close proximity to a variety of restaurants, shopping areas, and entertainment venues. The Kroger Field stadium is within 2 miles of the property.

The community last traded hands in 2022 when Campus Advantage and Tramview Capital Management purchased it through Campus Advantage’s Cash Fund I. It was sold for $23 million, Yardi Matrix data shows.

The Stretch is 96 percent leased for the current academic year and showed 10.8 percent year-over-year rent growth. Enrollment at the University of Kentucky increased by 7 percent in 2024. No off-campus student housing development is in the pipeline.

JLL’s Managing Directors Teddy Leatherman and Scott Clifton, Director Kevin Kazlow, and Associate Jack Goldberger led the Investment Sales and Advisory team that represented the sellers in the transaction.

Investor interest in student properties

Brad Webb, chief investment officer at RREAF Holdings, told Multi-Housing News that investor appetite for student housing in the South is remaining strong to due increasing enrollment paired with a lack of on-campus beds. Yet, for a student project to pencil out, the strength of the institution’s enrollment, economics and regulatory environment are all key factors.

“For example, the University of Kentucky, known for its cancer and disease research programs, faces uncertainty with potential cuts to National Institutes of Health funding under Trump’s proposed budget,” he said. “While speculative, this raises concerns for investors evaluating schools heavily reliant on specific programs for enrollment.”

Webb said that investors must prioritize student needs beyond institutional stability in an increasingly independent and self-isolating environment.

“Properties with strong amenities—communal spaces, top-tier management, proximity to campus, parking, in-unit washers and dryers, sustainability, and affordability—will remain competitive. Operators focusing on enhancing the student living, working, and social experience will be best positioned for long-term success.”

In November, Campus Advantage and Tramview Capital Management made a different student housing purchase in the South. The community, Alight Columbia, a 206-unit, 700-bed student housing community in Cayce, S.C., serves the University of South Carolina. It traded for $25.6 million, according to Yardi Matrix information.