Stonepeak JV Buys Student Housing Portfolio

A joint venture between Stonepeak and Cardinal Group Cos. has acquired a three-property student housing portfolio totaling about 2,300 beds. Simpson Thacher & Bartlett LLP served as legal counsel, while JLL worked as financial advisor for the buyer.

The properties are within walking distance from the campuses of major four-year public universities across the Sun Belt region, serving institutions that enroll roughly 40,000 students.

The Class A communities, delivered on average in 2020, offer a broad mix of amenities. Trends in student housing are expected to drive further shifts in design and increase the emphasis on wellness-focused features, as more developers zero in on amenities that serve residents and prioritize quality, functionality and overall feel.

Student housing sales across the U.S. involved 76 properties changing hands for about $3.7 billion in the first nine months of the year, according to a Yardi Matrix student housing report. These figures lagged behind last year’s, when 94 sales closed for a combined $5 billion.

Cardinal Group’s recent student housing activity

Founded in 2007, Cardinal Group focuses on multifamily and student housing properties. The firm’s management platform oversees more than 100,000 student beds.

In terms of investments, the company acquired The Union, a 224-bed student housing community in Corvallis, Ore., in August. Blackstone sold the 2013-completed asset for $33.5 million or about $149,554 per bed.

Cardinal is an active developer as well. The company’s construction subsidiary—Cardinal Group Development—recently broke ground on a student housing project near the Virginia Tech campus in Blacksburg, Va., in partnership with PGIM. The community will total 493 beds and is set to come online in 2027.