MD Student Housing Price Sets Record

CBRE assisted Greystar and Rockpoint Group in the $235 million sale, which marks the largest transaction for a single student housing asset in the U.S.
University View

CBRE National Student Housing Group, along with CBRE Washington D.C. Multifamily, has arranged the sale of University View, a 1,573-bed student housing community in College Park, Md., to an undisclosed buyer.

The $235 million deal broke the record for the highest dollar transaction for a single student housing asset. CBRE National Student Housing’s Jaclyn Fitts, William Vonderfecht and Casey Schaefer worked on behalf of sellers Rockpoint Group and Greystar in the transaction. The trio teamed up with William S. Roohan and Michael Muldowney of CBRE’s Washington, D.C. Multifamily team.

Challenging acquisition in tight student housing market

The greatest hurdle in transacting University View was the total investment size for a single asset,” CBRE National Student Housing Group associate director William Vonderfecht told Multi-Housing News. At $235 million, the acquisition represented a high concentration in one market, which challenged many investors.

“Our team dispelled investment size concerns by educating investors on University View’s incredible seven-consecutive-year track record achieving occupancy over 99 percent, the highly supply-constrained student housing market at the University of Maryland, and the asset’s irreplaceable location adjacent to a growing Tier I university in a gateway metropolitan area. We leveraged CBRE’s global platform to attract both domestic and international capital capable of acquiring an asset of this size. Ultimately, our global marketing process resulted in the most competitive environment possible, with 60 percent of the offers originating from foreign equity sources.”

With an address at 8204 and 8300 Baltimore Avenue in College Park, University View features two high-rises and 9,218 square feet of ground floor retail space.

Students at the University of Maryland, whose fall enrollment stood at 41,000, are within easy access of University View via a pedestrian bridge. The student housing community is also within steps of a wide array of dining and nightlife options along Baltimore Avenue within the Discovery District, featuring The Hotel at the University of Maryland, Riverdale Park and other attractions.

Global investor interest

University View boasts . . . major common area capital improvements, including the renovation of 33 percent of the units,” said Jaclyn Fitts, CBRE director of student housing. “The high occupancy rate demonstrated to potential buyers that University View is a top housing choice among University of Maryland students.” In addition to that, the property provides the opportunity for the buyer to drive net rental income by renovating the remaining 1,054 beds.

According to CBRE, the demand for strategically-located student housing investments at flagship universities across the United States by domestic and international institutions continues to expand. “This trophy asset received incredible investor interest globally, driving pricing to record-breaking levels. CBRE has represented 75 percent of the largest single asset student housing transactions across the United States,” added Vonderfecht.

Image courtesy of CBRE