Preiss Adds to Its Student Housing Portfolio
The operator acquired two communities totaling more than 1,100 beds.
By Anca Gagiuc
Los Angeles & Houston—The Preiss Co., one of the nation’s largest student housing owner-operators, announced its first two joint venture acquisitions of 2017—GrandMarc at University Village, close to the University of California’s Riverside campus, and Gateway at Huntsville, located near the Sam Houston State University. Both communities were acquired in separate joint ventures for undisclosed amounts from different private investment groups. The Preiss Co. will manage the assets, while overseeing renovations and upgrades.
“These acquisitions reflect our continued drive for nationwide expansion,” Donna Preiss, founder & CEO of The Preiss Co., said in prepared remarks. “Our portfolio has more than doubled in size to more than 50 properties over the past five years. Both of these complexes reflect the profile we seek: quality assets near large universities that are experiencing rapid enrollment growth. In addition, we see opportunities to enhance these properties with upgrades and installation of our proprietary, student-focused management systems.”
GrandMarc at University Village is 760-bedroom community located on a 12-acre lot at 3549 Iowa Ave. in Riverside, Calif., minutes from the UC Riverside campus and across the street from the University Village retail center. The community comprises six four-story stucco buildings with one- to three-bedroom floorplans, each with its own separate bedroom and bath. Apartments feature a patio or balcony, full-sized washer and dryer, laminate countertops and a full kitchen appliance package.
Common area facilities include a resort-style swimming pool and spa, outdoor grilling station and a basketball court. Furthermore, the recently renovated clubhouse offers study and meeting rooms, game room with billiards and table tennis, theater room, 24-hour fitness center and tanning beds. In addition, Preiss plans to install technology improvements such as the highest rated Wi-Fi speed, program upgrades to simplify online leasing, as well as enhancing social media connectivity.
The Gateway at Huntsville is a 160-unit community totaling 416-bedrooms spread across a nearly 12-acre site located at 5050 Sam Houston Ave. in Huntsville, Texas. The property consists of six four-story buildings, a swimming pool and basketball and volleyball courts. The new owner will upgrade more than half the units with new flooring, microwaves and furniture. Also, all bedrooms will be equipped with new mattresses, kitchen sinks and desk chairs, while the clubhouse will also receive a new computer and fitness rooms.
Same as GrandMarc at University Village, the Texas community will benefit from property-wide Wi-Fi, a better leasing software designed to improve online rental payments and occupancy, as well as social media capabilities. The community will also have the roof replaced, receive new HVAC units, patio furniture, grilling station, painting and landscaping. Preiss plans to upgrade the community’s shuttle too and provide complimentary service to and from the campus, located just one mile away.
“This is our second student housing complex in California and our seventh in Texas,” Preiss added. “Both campuses are new to our portfolio and the outlook is quite positive for continued enrollment development and strong student housing demand at these schools. We also expect to achieve economies of scale in operations at both properties.”
Images courtesy of The Preiss Co.