NKF Closes Sale of 2,000 Student Housing Units

The firm’s Student Housing Group has arranged the sale of three communities in Texas and another in North Carolina, with equity from Saudi Arabia, the Asia-Pacific region and the U.S.
Thrive, a student housing community in Lubbock, Texas

Newmark Knight Frank (NKF) has recently sold four student housing communities across the U.S. The transactions totaled 1,987 beds, and used equity sources from Saudi Arabia, the Asia-Pacific region and the U.S. The deals involved three communities in Texas—Mustang Ranch in Stephenville, Ella Lofts in San Marcos and Thrive in Lubbock—and the River Walk property in Cullowhee, N.C.

“These early 2019 transactions, with equity coming from three different countries, are a testament to the diversified capital base currently acquiring U.S. purpose-built student housing and a sign of what to expect throughout the remainder of the year,” said Ryan Lang, vice chairman and head of NKF’s Student Housing Group, in prepared remarks. Also representing the sellers in the transactions were Brandon Buell, managing director, and Jack Brett, transaction manager.

Three in Texas

Mustang Ranch is a 501-bed, 192-unit student housing community situated less than one mile from Tarleton State University in Stephensville, which is experiencing a substantial student growth spurt. The community was developed by affordable housing development group Domus Development. The buyer and price were undisclosed.

Ella Lofts, a 252-bed, 75-unit development that stands across the street from Texas State University in San Marcos, was sold by Stonemont Financial to Miami, Fla.-based Vie Management. That premier location combines with strong market fundamentals and a retail component that NKF believes make it a long-term investment that will garner operational upside.

Thrive is a 744-bed, 264-unit student housing community that was acquired for an undisclosed price by Lafayette, La.-based real estate firm TEXLA. According to Yardi Matrix, the seller was Redstone Residential, which acquired the community from National Asset Services back in 2015. Built in 2004, Thrive is situated across the street from Texas Tech University in Lubbock.

Tar Heel State

River Walk features 490 beds and 196 units and is situated a half mile from one of the fastest- growing universities in the U.S., Western Carolina University (WCU). Fully leased almost two months before the 2018-19 academic year, River Walk is a strong-performing asset in a burgeoning market anchored by WCU. NKF represented Realco Capital Partners in its sale of the property for an undisclosed price to Boca Raton, Fla.-based Waypoint Residential.

Just last week, another Texas student housing property changed ownership in a $100 million deal. Nelson Partners Student Housing acquired Skyloft, 674-bed community located one block from the University of Texas in Austin, from Johnson Trube & Associates.

Earlier this month, Berkadia secured a $48.7 million Freddie Mac refinance loan for Capstone Cottages of Lubbock, a 969-bed student housing community in Lubbock, Texas.

Image courtesy of Yardi Matrix