Scion Group, PGIM Land $83M Refi for Student Community

A joint venture of The Scion Group and PGIM Real Estate has refinanced VERVE, a 181-unit, 696-bed luxury student community in New Brunswick, N.J. A QuadReal Property Group affiliate provided the fixed-rate, $83.4 million loan, according to Yardi Matrix information, while TSB Capital Advisors brokered the deal.

The joint venture acquired the asset in September 2021 as part of a $181 million, two-property portfolio transaction, the same source shows. Kayne Anderson Capital Advisors sold the communities. The new ownership also assumed the outstanding balance of a $75.4 million CMBS loan from Citibank, originated by PNC Bank.

Dating back to 2020, VERVE provides single or double occupancy. The property serves Rutgers University and is 100 percent occupied. The community encompasses studio, two-, three-, four- and five-bedroom floorplans, ranging between 346 and 1,414 square feet, along with some 9,000 square feet of retail space. The fully furnished units feature washers, dryers and private bathrooms in select layouts.

Common-area amenities include a fitness center, private and group study lounges, private parking garage and gaming spaces. Additionally, the eight-story building has a HIIT studio, individual and group study rooms, café and outdoor lounge with kitchen and grilling stations.

Located at 88 Easton Ave., the community is two blocks from Rutgers University’s main campus and within walking distance of a host of dining options. The North Brunswick Plaza shopping center is less than 7 miles away, while Newark Liberty International Airport is 26 miles away.

The Scion Group’s recent student housing deals

The Scion Group currently operates 125 communities totaling nearly 82,000 bedrooms across 75 different university markets in 33 states. The company invested more than $6.5 billion in the student housing sector since its founding in 1999.

In March, Scion formed a joint venture with an institutional investment partner to acquire The Aves at Twelve100, a 507-unit, 1,527-bed student community in Orlando, Fla. Harrison Street sold the asset.

A month before, Scion Student Communities, a joint venture of The Scion Group, the General Investment Corporation of Singapore and the Canada Pension Plan Investment Board obtained $380 million in refinancing for 11 student housing properties located across eight states. Walker & Dunlop provided the credit facility.