Alex. Brown Realty & Asset Campus Housing Acquire 316-Bed Dakota Ranch in San Marcos
- Mar 08, 2016
San Marcos, Texas—A joint venture formed by Alex. Brown Realty Inc. and Houston-based Asset Campus Housing recently acquired a 316-bed student housing facility located in San Marcos, Texas. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $5.9 million in the joint venture.
Located near the main campus of Texas State University in San Marcos, Dakota Ranch offers 188 apartment units within 10 three-story buildings situated on 17 acres. The facility developed in 2003 features one-, two- and three-bedroom floorplans with sizes ranging between 523 and 1,111 square feet.
Dakota Ranch was 99 percent leased at the time of the sale. Community amenities include grilling area, game room, fitness center, sand volleyball court, free cable and free high-speed internet, swimming pool, business center and a Starbucks coffee bar.
“This was an off-market transaction negotiated by ACH,” said Tom Burton, ABR’s chief investment officer, in prepared remarks. “We acquired the asset at an attractive basis and anticipate increased NOI and asset value with the successful implementation of the business plan,” added Burton. Dakota Ranch represents the fifth joint venture between ABR and ACH.
“ACH has proven to be a strong joint venture partner and we are pleased to be venturing another project with them,” stated John Prugh, president & CEO of ABR.
Extensive capital improvements focused on strategic interior and exterior upgrades to refresh the property and correct deferred maintenance are planned for Dakota Ranch. These improvements are expected to drive higher rents for the 2016-2017 school year.