Berkadia Closes Sale of Student Housing Assets for $146M
- Jun 28, 2017
Berkadia has announced new transactions, after closing the sale of a 528-unit St. Louis community earlier this month. The company facilitated the sale of two student housing properties, for a total of $146 million.
Managing Director Kevin Larimer and Director Greg Gonzalez, together with Senior Managing Director Kenny Dudunakis, Director David Sorensen and Director Ben Johnson of Berkadia’s Seattle office represented the seller, Virginia-based firm AvalonBay Communities Inc., for the sale of AVA University District at University of Washington. Managing Director Shane Shafer of the company’s Irvine office, closed the sale of Fullerton University Village at California State University in Fullerton, Calif., on behalf of the seller, a local TIC group.
A closer look at the properties
- Ava University District, located at 4535 12th Ave., features 283 units. The property is near the University of Washington and less than five miles from downtown Seattle. The six- and seven-story building offers studio, live-work, one- and two-bedroom units. Amenities include a fitness center, free Wi-Fi, a media center, a clubhouse and a total of 400 parking spaces. According to data provider Yardi Matrix, American Campus Communities bought the asset for $112.5 million from Avalon Bay Communities.
- Fullerton University Village is located at 2000 Oxford Ave., in close proximity to California State University, Fullerton. The 100-unit community offers studio, one-, two- and three-bedroom units averaging 906 square feet, according to Yardi Matrix. Common area amenities include a clubhouse, a fitness center, a swimming pool and a volleyball court. The two- and three-story building also offers three laundry facilities.
“Student housing seems to be the product type of choice right now for investors,” Larimer, said in prepared remarks. “Investors have identified the strong fundamentals of student housing with fewer deliveries, average occupancy above 97 percent, annual rent growth more than 3 percent and a fixed resident base from which to draw. Whether they are looking for yield or a defensive position, investors are finding a comfortable home for their capital in student housing.”
Images courtesy of Yardi Matrix