Inland JV Lands $102M for Florida Student Housing Project

A joint venture including Inland, Peerless Development and Core Spaces has received $102.1 million in construction financing for HUB Tallahassee, a student housing project in Tallahassee, Fla., according to Leon County public records. JPMorgan Chase provided the financing, the same source reveals.

The project team also includes general contractor Juneau Constructions, with Niles Bolton serving as architect and designer. Inland Real Estate Acquisitions LLC worked on putting together the venture on behalf of an Inland affiliate.

Situated in a qualified opportunity zone, the 7-story project is slated to include 367 units featuring studio through six-bedroom floorplans and encompassing 1,316 beds. Amenities will feature a rooftop swimming pool, a gym, a spa, as well as private study rooms and adjacent parking. Completion is expected for the fall of 2026.

Located at 504 W. Tennessee St., the project is within 1 mile of Florida State University, as well as the Florida Agricultural and Mechanical University. A wide range of quick service dining options, such as Popeyes, Starbucks and McDonald’s, can be found along West Tennessee Street. Carter-Howell-Strong Park, an 11-acre park providing leisure and recreational activities, is less than a mile away.

Centre of Tallahassee and Governor’s Marketplace, two shopping centers comprising a total of some 50 stores, are within a 3-mile radius. The project is 2 miles from another student housing development that broke ground in 2022 and is expected to bring online more than 700 beds by 2024’s third quarter.

Inland Senior Vice President of Acquisitions Mark Cosenza alongside Vice President David Neboyskey oversaw the proceedings which led to the closing of the venture.

Studying the surge in Tallahassee’s student housing market

With a total enrollment of more than 42,000 students as of the fall of 2023, FSU has a dormitory capacity of some 6,700 on-campus beds and more than 28,000 off-campus ones, according to Yardi Matrix data. Having north of 9,200 students enrolled as of the fall of 2022, the Florida Agricultural and Mechanic University holds a dormitory capacity of roughly 2,500 on-campus beds, with another 6,400 off-campus beds, the same source shows.

Having a supply pipeline of more than 2,700 beds under construction, Tallahassee’s FSU was already 60.4 percent preleased as of January, bolstering a positive year-over-year change of 6.3 percent, a Yardi Matrix report shows.  

According to FSUNews, the average student housing rent has surged over the past three years in Tallahassee, spiking by more than 30 percent. The current average rate is $839, up from $642, according to the same source.