Greystar Buys Lone Star State Student Housing Asset
The property is located near a major state university campus.
Greystar has purchased Uptown Square, a 316-unit, 512-bed asset in San Marcos, Texas, from Oak Brook, Ill.-based Inland Private Capital. The purpose-built student housing community is located adjacent to Texas State University’s main campus.
Peter Katz of Institutional Property Advisors, a division of Marcus & Millichap, advised the seller on the deal. The purchase price could not immediately be learned.
Completed in 2015, Uptown Square has consistently been a strong performer and was 98 percent occupied for the 2023-2024 school year, exceeding the national average, according to Yardi Matrix data.
Uptown Square is less than one block from campus and near the university’s shuttle route and UFCU Stadium. Three shopping centers are within a short walk and the several parks and recreation areas are located nearby.
The community features a mix of studio and one- and two-bedroom units, with 100% bed-bath parity, fully equipped kitchens with granite countertops and stainless-steel appliances, in-unit washers and dryers, outdoor balconies and high-speed Wi-Fi.
One of the 40 largest universities in the country, Texas State San Marcos enrolled nearly 39,000 students in fall 2023, but only offers on-campus beds to 17.6% of its students. Katz, in a prepared statement, said that deficiency drives more than 24,800 Texas State students to seek off-campus housing.
Nation-wide numbers
Nationally, preleasing was ahead of pre-pandemic averages through July, while rent growth outperformed conventional multifamily sectors. Preleasing in July fell slightly year-over-year, according to Yardi Matrix data. As of that month, the student housing sector was 5 percent behind fall 2023 occupancy levels, which settled at 94.6 percent last year. Nevertheless, 41 schools have already reached and exceeded their fall 2023 preleasing levels.
The average advertised asking rent per bedroom clocked in at $897 in July, marking a 4.7 percent increase year-over-year. Advertised asking rent growth has slowed, falling from nearly 7 percent recorded earlier in the leasing season, and averaged 6 percent for the season.
