Preiss Adds 3 Student Housing Properties to Portfolio
The acquisition consists of properties in Tampa, Fla.; Indianapolis, Ind.; and Raleigh, N.C.
Tampa, Fla.—The Preiss Company has acquired three student housing properties—located in Tampa, Fla.; Indianapolis, Ind.; and Raleigh, N.C.—in joint ventures with a private equity group.
The acquisition consists of 4050 Lofts, a 722-bed community adjacent to the University of South Florida; The Avenue, a 358-bed property serving Indiana University-Purdue University; and the 162-bed Campus West at Tyron near North Carolina State University.
“While we believe that student housing is highly resistant to economic downturns, our experience has been that markets that have diverse economic drivers continue to produce the highest returns,” Donna Preiss, the Preiss Company’s founder and CEO, told MHN. “The Indianapolis market is a great example. It is the perfect market in that it has Eds, Meds, state government and diverse, vibrant industries.”
The Indianapolis property is adjacent to five medical centers and IUPUI, a very young university but one that has already grown to have the country’s largest nursing school and the second largest medical school.
The 4050 Lofts offers three- and four-bedroom units, each with a private bedroom and bath, and common living room and kitchen. The property is located directly across the street from campus classrooms, the student center, area restaurants and nightlife at 4050 Rocky Circle on 10-plus acres.
The property will undertake a renovation that includes exterior upgrades, updating the swimming pool to include a new grilling station and furniture and individual unit enhancements in each kitchen.
According to Preiss, USF is a market that the company has been trying to get into for some time and believes that it can take the property to the next level. Overall, Preiss has added 10 student housing properties in 2016.
“Good markets are created when there is liquidity, healthy fundamentals and confidence,” she said. “All three are present today. During the first half of this year we have completed more than $450 million in transactions. Our pipeline is robust.”
Campus West at Tyron was developed by Preiss in a joint venture in 2014, and is situated on more than 5.5 acres, approximately 1.5 miles from the North Carolina State University Centennial Campus. Rooms feature state-of-the-art finishes, including granite countertops, stainless steel appliances and private bedrooms and bathrooms.
“We have a deep pool of joint investor partners with different investment strategies,” Preiss said. “We were fortunate that our prior joint venture partner had achieved its investment goals and wanted to harvest its returns, while the property matched up well to another investment group’s financial strategy. This is a great property in outstanding physical conditions with high satisfaction ratings from our student lessees.”