CollegePlace Partners Nabs Tallahassee Student Housing for $23M
- Jul 29, 2016
Tallahassee, Fla.—CollegePlace Partners continues to expand with its acquisition of a 311-bed student housing portfolio near Florida State University. Its $22.7 million purchase of The District, totaling eight properties, marks the fourth acquisition for the firm since its founding in 2015.
The seller of the property in the off-market transaction was Atlanta-based Chance Partners.
“The portfolio is near a tier-one college campus that we were able to acquire at a below-market price,”CollegePlace Partners Principal Beau Jaussi told MHN. “The properties are extremely well build and we believe we can create value with improved managerial practices.”
Chance Partners completed The District in 2012, which offers eight town homes and flat-style buildings totaling 90 units. Student residents can choose from three- to six-bedroom, fully furnished floor plans that range in size from 1,530 to 2,352 square feet.
Units feature 50-inch TVs, walk-in closets, private bathrooms for each bedroom and they’re pet friendly.
The community is located at the southeast border of the 438-acre university in what’s known as the College Town neighborhood. The neighborhood is also home to the university’s Fraternity and Sorority Row, which is considered a highly desirable off-campus living location. The area is also in the midst of a major redevelopment, with plans for new housing, retail stores, restaurants and entertainment venues, though the project is in its early stages, according to CollegePlace Partners release.
In addition to its proximity to the university, The District also provides much-needed student housing. “Florida State has the capacity to house only 20 percent of its undergraduate enrollment of more than 41,000 students,” Jaussi said. “The District also serves nearby Florida A&M which can house only 28 percent of its undergraduates students on campus. Given these factors, we believe the District is well positioned among the competitive set to take advantage of the tremendous demand for well-located, highly amenitized student housing in the college town of Tallahassee.”
This acquisition fits in with CollegePlace Partners overall strategy, which is to purchase value-add student housing properties within a 10-minute walk of major universities with student populations of 20,000 or more. The company now owns more than 700 beds and 60,000 square feet of student-serving retail near Illinois State, University of South Carolina, Clemson and Florida State.
CollegePlace Partners plans to make some improvements to the community, including new landscaping, state-of-the-art securing, and video monitoring systems, Jaussi said.
The company plans to close on three more properties totaling about $100 million by the end of this year.
Andrew Kirsh and Serineh Baghdasarian of Los Angeles-based law firm Sklar Kirsh LLP represented CollegePlace Partners, while Austin-based brokerage firm Four Point Investments represented Chance Partners in the transaction.
Kirsh said this was a “complex transaction” that required assuming debt from three separate lenders with different requirements.
CollegePlace Partners has also selected Asset Campus Housing to manage the property.