North Carolina Student Apartments Sell for $69M
The property traded for more than double its purchase price of nearly a decade ago.
Mountaineer Village Apartments in Boone, N.C., a student housing development serving Appalachian State University, has been sold for $68.5 million 10 Federal. The former owners were able to sell the asset for more than double what it was acquired for nearly a decade ago, having purchased it for $32.5 million.
The community is made up of 573 beds across 191 units, each of which include three bedrooms with hardwood floors, in-unit laundry and energy-efficient appliances. The pet-friendly community houses shared amenities including a basketball court, volleyball court and swimming pool, as well as a fitness center and clubhouse. With this sale, the student housing community is now being managed by Coastal Ridge, according to its website.
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The 2016 acquisition was made with a CMBS loan totaling 24.6 million from Fannie Mae with a 4.75 percent fixed interest rate that was set to mature in February 2026, Yardi Matrix data shows. Over the years, the community has been a reliable source of revenue for the company. 10 Federal saw the property reach a gross IRR of 25.60 percent and a 6.03 equity multiple. The net IRR reached 21.1 percent with an equity multiple of 4.42. The success of the asset has led 10 Federal to make operational enhancements and capital improvements to the property.
An apt pupil
Yardi Matrix data shows that for the Fall 2023 and Fall 2024 semesters, the entire property was 100 percent preleased leading into the start of classes. For the upcoming Fall 2025 semester, Mountaineer Village Apartments is approximately 85 percent preleased.
Located at 517 Yosef Drive in Boone, N.C., the apartment community is about two miles away from the University with public transit services running every 15 minutes for students.
Student housing rents drop amid new deliveries
Heading into this school year, across Yardi 200 schools, the data shows that preleasing has reached 89.9 percent in July for the 2025-2026 academic year. This figure is 170 basis points ahead of where the metric was last year. Asking rents are down to $905 per bed. As more supply comes online, this is a contributing factor to rent declines.
Earlier this week, Landmark opened its first Minnesota student housing project for the University of Minnesota at Minneapolis. The Standard at Dinkytown features 323 units with 1,021 beds, with 30 apartments reserved for affordable housing.
In Austin, Park 7 Group and Hoar Construction finished Icon for the University of Texas campus. The project has been underway since 2023 and has opened its doors for 216 apartments for the 2025-2025 school year.
