Nelson Partners Pockets $36M for Phoenix Student Housing
The asset was 97 percent leased at the time of the sale.
Nelson Partners has sold The Mark, a 229-bed off-campus student housing community serving students at the Arizona State University in Tempe, Ariz. Tara Investment Group, a division of Shefflin Investments, paid $36.1 million for the asset. Prime Finance Partners provided a $25.6 million acquisition loan, according to Yardi Matrix data. Colliers arranged the transaction on behalf of the seller.
The four-story building offers a mix of studios and one- and two-bedroom apartments, ranging from 300 to 932 square feet. Amenities include a gym, swimming pool, volleyball and basketball court as well as two laundry facilities. Residents have access to more than 250 parking spaces.
Located at 1115 E. Lemon St., The Mark is less than a mile from the ASU campus. The property is also within walking distance of the Valley Metro Rail line connecting to downtown Phoenix, less than 12 miles to the west.
The former owner renovated the 1970-built property in 2014. At the time it changed hands the community was 97 percent occupied.
A strong university market
ASU-Tempe was one of the best performing university markets across the U.S. in the 2020-2021 academic year, both in terms of new student housing deliveries and rent growth, a Yardi Matrix webinar shows. In the 12 months ending in August 2021, a total of 3,206 bedrooms were delivered in Tempe.
Last year, Tempe added two student housing communities to its inventory, according to Yardi Matrix data. In January, a joint venture of Toll Brothers and Harrison Street broke ground on Canvas, an 826-bed, luxury community located within walking distance of the ASU campus. The project delivered in the second half of last year.
Trinitas Ventures also developed Atmosphere, a 530-bed community at 707 S. Forest Ave. The 20-story tower is less than a mile from the university campus.