Texas Student Housing Community Changes Hands
- Oct 13, 2015
Baltimore—Alex. Brown Realty Inc., in partnership with Asset Campus Housing, announced the acquisition of University Springs, a student housing development located at 109 West Ave., near the main campus of Texas State University in San Marcos, Texas.
The value-add real estate fund ABR Chesapeake Fund IV, sponsored by ABR, invested $4.6 million in the joint venture. The acquisition was financed with a first mortgage loan from Amegy Bank. At closing, the property was 98 percent pre-leased for the 2015-2016 academic school year.
“We were able to acquire the property at a compelling basis,” said Tom Burton, CIO of ABR. “With the value-add improvements and close proximity to campus, we anticipate positive results for our investors,” added Burton.
The 488-bed student housing development was built in 1998 and offers 152 two-, three- and four-bedroom units ranging in size from 1,000 to 1,277 square feet. Community amenities include a swimming pool, oversized hot tub, game room, tanning bed, sand volleyball court, basketball court, computer lab, fitness center and activity room. Unit amenities feature washer/dryers, 9-foot ceilings, kitchen pantries, balconies and patios, walk-in closets and high-speed Internet.
The community will be rebranded as The Reserve at West Avenue and will include significant upgrades to the interior and exterior of the property. “Once the capital improvements have been completed, we plan to restructure the lease rates and expense payments beginning in the 2016-2017 school year to bring the property in-line with the market,” said Stephen Mitchell, EVP with Asset Campus Housing.
Image courtesy of University Springs’ Twitter Page