8-Property ID Student Housing Portfolio Trades Hands
- May 17, 2018
The Rexburg Portfolio, an eight-property, 1,546-bed student housing portfolio in Rexburg, Idaho, has traded hands between private parties. Danny Shin and Brock Zylstra with Marcus & Millichap represented the seller, a Seattle-based firm, and procured the buyer, a company based in Utah.
The properties include Somerset, 480 S 1st W, 49 units, 288 beds; Alpine Chalet, 460 S 2nd W, 43 units, 252 beds; Brookside Village, 487 S 3rd W, 26 units, 146 beds; Rockland, 235 and 255 W 4th S, 60 units, 238 beds; Autumn Winds, 160 W 5th S, 31 units, 120 beds; Georgetown, 236 W 3rd S, 13 units, 72 beds; Birchwood, 255 S 2nd W, four units, 24 beds; and Birch Plaza, 253 S 2nd W, 70 units, 406 beds.
The three-story Somerset Apartments property, for example, was built in 1978 and has on-site laundry facilities, a property manager, and Internet access. Common amenities include a fitness center, spa, pool, game room and business center. Three-bedroom units, which are 900 square feet to 1,000 square feet, cost $1,135 a month.
Properties Are Near a Growing University
All the properties are near the campus of Brigham Young University-Idaho, a school owned by the Mormon church. Student enrollment has been growing: During the fall semester 2017, campus enrollment was 19,399 students, an increase of 7.9 percent compared with a year earlier, when enrollment was 17,980.
“Each one of the student housing assets is just one or two blocks from the campus, which operates year-round,” says Shin, senior vice president investments in Marcus & Millichap’s Salt Lake City office. “The portfolio’s location and consistent flow of students will provide new ownership with steady cash flows and the opportunity to [make] strategic renovations.”