Alex. Brown JV Pays $24M for Alabama Student Asset
- May 18, 2021
Alex. Brown Realty and Student Quarters have purchased the 440-bed Riverfront Village, a student housing property near the University of Alabama, for $24.1 million, according to Yardi Matrix. Ares Commercial Real Estate provided $19.5 million in acquisition financing. The seller was Chance Partners.
The transaction is the third collaborative purchase between ABR and Student Quarters. TSB Realty’s Randall Calvert closed the deal on behalf of the seller.
Completed in 2014, the 192-unit property offers one-, two- and three-bedroom floorplans, all with incorporated bathrooms. All units are fully furnished and have private balconies. The pet-friendly community includes amenities such as an outdoor pool with a lounge, a two-story fitness facility with a yoga room as well as computer rooms, study areas and garage parking.
Located at 2330 Jack Warner Parkway NE in Tuscaloosa, Ala., Riverfront Village is within walking distance of the Tuscaloosa Amphitheater, close to a wide variety of cafés and restaurants downtown. The University of Alabama is less than 2 miles to the east. Alongside the Black Warrior River, the property has access to The Riverwalk and is within half a mile of several parks.
Challenges in the student housing sector are expected to continue during the next school year. Preleasing activity has declined by 2.8 percent for the fall of 2021 compared to the same period last year, Yardi Matrix data shows. Student housing vacancies could rise between 10 and 90 basis points, while a 3.1 to 4.3 percent decline in rents is anticipated, according to Moody’s Analytics.