TH Real Estate Acquires 2 for $93M

By D.C. Stribling, Contributing Editor

The Knoll

TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), has acquired two student housing properties in Minneapolis. The apartments are adjacent to the University of Minnesota and were purchased from Minneapolis-based owner/developer Doran Cos. for a total of $93 million.

One property is The Knoll (pictured), which includes 101 units and 226 beds at 1101 University Avenue SE. The other property is The Bridges, which includes 210 units and 360 beds at 930 University Avenue SE. The apartments were developed in 2013 and 2014, respectively.

“Both are high-quality buildings in locations that provide residents walking accessibility to both the University of Minnesota’s campus, as well as the neighborhood of Dinkytown,” said Brian Eby, a senior director at TH Real Estate overseeing multifamily and student housing transactions. “The assets have had consistently high occupancy levels.”

Taking advantage of trends

TH Real Estate targets student housing assets that are core and value-add assets in certain university markets. The company currently owns over 6,000 beds and seeks properties near public universities with Division I athletics and enrollment levels of at least 15,000.

“We believe the sector is poised to take advantage of trends that will play out beyond traditional real estate cycles, and offers defensive characteristics such as demand driven by student enrollment, which we see increasing over the next five to 10 years,” added Eby. “It also has the potential to offer diversification from several perspectives, including location and demand drivers.”