Waypoint Residential Acquires 2 Student Housing Properties
- Mar 19, 2018
Waypoint Residential has acquired The Social at Auburn, an 844-bed student housing property near Auburn University in Alabama. The company also acquired Rockland West, a student housing property with 500 beds near the University of Kansas at Lawrence.
The Social at Auburn is a garden-style community about 1.5 miles from the Auburn campus and which is served by the university’s bus system. Over the next two years, the buyer will the undertake a comprehensive repositioning of the property, including a complete rebranding. Waypoint plans to invest about $3.7 million to renovate the unit interiors and improve the exterior and common areas.
Rockland West is also a garden-style community, built in 2009, that features a newly renovated fitness center and clubhouse with a theater, gaming area, computer lab and fitness center. The property is served by both a university shuttle bus and a private property shuttle. Waypoint intends to invest about $1 million to address deferred maintenance and complete the amenity and unit upgrade program started by the previous owner.
On a Student Housing Buying Spree
The two deals cap an active year in the sector for Connecticut-based Waypoint, in which it added nine properties and 4,788 beds to its portfolio in four separate transactions. Waypoint entered the student housing space in 2016 and since then has grown its portfolio to nearly 6,000 beds with a total capitalization of about $400 million.
“Student housing is an important component of our overall strategy of assembling a diverse range of real estate investments,” said Waypoint Residential CEO Scott Lawlor. “Student housing has historically performed well through various economic climates.”
During 2017, Waypoint acquired a three-property, 1,382-bed portfolio from Starwood Capital Group for about $75 million. They included Chapel Ridge, a 544-bed, garden style student housing property serving the University of North Carolina at Chapel Hill; Chapel View, a 358-bed, garden style, student housing community adjacent to Chapel Ridge; and Lodge of Athens, a 480-bed, garden style, student housing community serving the University of Georgia.