4-State Student Housing Portfolio Changes Hands

A three-way joint venture acquired communities in Georgia, Tennessee, Texas and Washington. The properties encompass 2,282 units.

A joint venture of Campus Realty, T2 Capital Management and Reliance International Real Estate Partners has acquired a 2,282-bed student housing portfolio spread across four properties in four U.S. university markets. 

Asset Campus Housing will provide property management services for the four communities, which are located at Central Washington University (Ellensberg, Wa.), Stephen F. Austin State University (Nacogdoches, Texas), Austin Peay State University (Clarkesville, Tenn.) and Georgia Southern University (Stratesboro, Ga.).

“This opportunity fits squarely in our value-add strategy,” Jeff Brown, T2’s co-founder & CEO, said. “We’re pleased to be able to expand our programmatic venture with Campus Realty with these strategically positioned assets.”

The joint venture plans a large capital improvement program on all four communities, with Campus Realty providing asset management services and overseeing the renovations. The properties were built between 2007 and 2012.  

“Our plan is to implement the capital and operating strategy for these properties quickly and efficiently,” Randy Herron, Campus Realty’s principal, said. “We will then judge our success based on the positive experiences of our residents.”

All four student housing communities in the portfolio will undergo improvements to unit interiors and enhancements to amenities and individual clubhouses to up their appeal and cash flow.

According to Herron, Campus Realty looks for underperforming assets, with hopes to reposition them with market-competitive improvements while maintaining value rents.

“We look forward to rebranding these properties while providing top-quality service to create a great living experience for students and value for our partners,” he said.

Demand for Student Housing Investments Increasing

With the current state of the economy, Kevin Larimer, managing director of student housing at Berkadia, recently told Multi-Housing News that student housing is an attractive investment opportunity for many investors, and believes more and more capital will continue to flow into the space, as “investors continue to recognize student housing offers arguably the best risk adjusted returns in all of real estate.”

It’s been a busy few months in student housing portfolio sales. In December, Newmark Knight Frank (NKF) secured the $220 million sale of seven student housing communities totaling 3,558 beds; and in November, Hunt Real Estate Capital provided a $9 million loan for the acquisition and renovation of Carlton Scott Apartments and Stonegate Apartments, a student housing portfolio totaling 196 beds in Blacksburg, Va.

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