PGIM JV Buys Class A Student Housing Portfolio

Verve in New Brunswick, N.J.

A partnership between The Scion Group and PGIM Real Estate has purchased Verve and Aero on 24th, two Class A student housing assets in New Brunswick, N.J., and Gainesville, Fla., adding up to 1,244 bedrooms. TSB Capital Partners helped close the transaction on behalf of the sellers.

According to Yardi Matrix, Kayne Anderson Capital Advisors was the former owner and the developer of the communities, which were both completed last fall. In January, Citibank provided a $75.4 million CMBS refinancing package for Verve, retiring a previous $64.2 million construction loan.

Portfolio breakdown

Located at 88 Easton Ave., Verve offers 525 beds to students at Rutgers University. The nine-story building has studios and two- to five-bedroom units with floorplans ranging from 346 to 1,414 square feet.

In-unit amenities include high-speed internet as well as washers and dryers, while common-area amenities feature a gym, study lounge and outdoor grilling area. Residents have access to roughly 130 underground parking spaces.

The property is within walking distance of College Avenue Campus, less than 3 miles from the Busch Campus and the Livingstone Campus. Downtown Manhattan is 36 miles to the north via Interstate 95.

Located at 3658 SW 24th Ave., Aero on 24th offers 719 beds to students at the University of Florida. The six four-story buildings have one-, two- and four-bedroom apartments and townhomes, ranging from 435 to 1,394 square feet. High-speed internet and washers and dryers are available in all units. Students have access to a swimming pool, outdoor kitchen and grilling area, clubhouse, gym and study lounge.

The community is next to a large retail area, roughly 2 miles from the University of Florida campus and 9 miles southwest of Gainesville Regional Airport.

Student housing still thriving

Aero on 24th is The Scion Group’s fourth student housing asset in the University of Florida market, while Verve is the company’s first Brunswick acquisition.

The Scion Group is encouraged by the ongoing strength and favorable macro trends in the sector, as well as by increased institutional capital interest coming from both equity investors and lenders, a company representative told Multi-Housing News. 

A slight drop in occupancy and preleasing rates in the first part of the year compared to previous years hasn’t diminish investors’ confidence in the student housing market. Interest remains high, particularly for properties near top universities, which have proved more resistant to pandemic-related insecurity.

Reflecting market dynamics, a partnership between Blackstone and Landmark Properties paid $784 million for 5,416 bedrooms across eight student housing properties last month.