Halstatt Real Estate JV Sells 299-Unit LSU Student Property
The seller partnered with Landmark Properties to acquire the community in 2021.
Halstatt Real Estate Partners has sold The Legacy at Baton Rouge, an 898-bed community in Baton Rouge, La., serving students at Louisiana State University. The seller bought the property last year in a partnership with Landmark Properties and implemented an enhancement and rebranding plan. Last year, the joint venture secured a $32.8 million Fannie Mae CMBS loan, originated by Capital One, Yardi Matrix data shows.
Completed in 2015, the community comprises six buildings with one-, two-, three- and four-bedroom apartments, ranging from 570 to 2,519 square feet. Community amenities include a fitness and business center, clubhouse, volleyball court, swimming pools and spas.
The value-add and rebranding program resulted in the repositioning of the asset and achieving full lease for the 2021-2022 academic year and a 100 percent prelease rate for the 2022-2023 school year, mentioned Halstaat Principal Peggy Lamb in prepared remarks.
Located at 449 Ben Hur Road, the community is less than 2 miles from the university campus and less than 3 miles from Tiger Stadium. Several dining options and a Walmart Neighborhood Market along West Lee Drive are within half a mile of the property.
LSU’s positive rent growth
Louisiana State University is among the country’s top student housing markets, registering a 9.5 percent average rent increase on an annual basis as of March, according to a recent Yardi Matrix report. Prelease growth has neared 17.1 percent compared to the previous year, while year-over-year enrollment growth was at 7 percent.
The Baton Rouge student housing market has had its share of activity over the past year. At the end of 2021, Versity Investments acquired the 466-bed Oakbrook Apartments for $34.7 million. Moreover, Fountain Residential Partners broke ground on The Vue on Parker, another 294-bed student-dedicated property, expected for delivery in 2023.