A few months after announcing a $1 billion student housing platform, Landmark Properties and Abu Dhabi Investment Authority are continuing their partnership with a $2 billion build-to-core student-dedicated joint venture. The companies will focus on operating and developing properties throughout the country, with several development opportunities already on the cards.
The joint venture owns 17,400 beds in Tier 1 university markets and will continue to grow its development pipeline. The pandemic and the fluctuating housing environment has not impacted Landmark’s projects, as the company relies on an in-house general contractor, said President & CEO Wes Rogers, in prepared remarks.
With a 10.1 percent higher prelease rate, reaching 87.2 percent as of June for Yardi 200, the student housing sector is showing strong performance, the latest Yardi Matrix report shows. With 135,000 bedrooms under various stages of development and 60,000 bedrooms under construction, the industry is registering a 4 percent uptick in development compared to the previous quarter.
Feeding a strong pipeline
Landmark’s $10 billion portfolio comprises close to 100 communities and 58,000 beds across the U.S., with a 7.5 percent annual rent growth year-over-year. The company also has 21 properties under construction, estimated at $3.7 billion.
Since March, Landmark has broken ground on The Retreat at Fayetteville, a 585-bed asset adjacent to the University of Arkansas and announced the development of The Mark at Los Angeles, a 166-bed community next to UCLA. Landmark is also working on its second development in Seattle, which will offer 500 beds and 3,300 square feet of ground-floor retail.
This month, Landmark formed a partnership with Cerca Trova LLC for a new mixed-income project in Ann Arbor, Mich., scheduled for completion in August 2024. The Legacy at Ann Arbor will encompass two buildings and 521 beds across 253 apartments, as well as 9,700 square feet of amenities.