The Preiss Co. Expands Student Housing Pipeline

The Preiss Co. has acquired and capitalized a pair of student housing development sites in Knoxville, Tenn., and Raleigh, N.C., to be developed in partnership with Monarch Alternative Capital. The properties serve the University of Tennessee and North Carolina State University.

Scheduled to be delivered in fall 2027, the communities are the Signature on Grand in Knoxville, Tenn., and Signature on Varsity in Raleigh, N.C. Collectively, they total 1,200 beds and feature studio, one-, two-, three-, four- and five-bedroom floorplans.

Each of the properties offer pools, fitness centers and multiple study lounges and social spaces. Signature on Grand has a sky lounge with city views and Signature on Varsity features a rooftop clubhouse and courtyard spaces.

“Both developments are located within walking distance of tier one, growing Universities with supply/demand imbalances,” Susan Folckemer, chief acquisition and development officer, The Preiss Co., told Multi-Housing News.“We began construction Q1 2025 and look forward to delivery in Q2 2027.” 

Teddy Leatherman and Jayme Nelson of JLL sourced equity for the project. Ian Walker and Ben Roelke of Newmark secured debt and construction financing.

Student housing’s strong opportunities

Nina Farrell, senior vice president, government, education, and non-profit advisory, JLL, told Multi-Housing News that student housing continues to be a compelling investment opportunity, driven by persistent demand and evolving student preferences.

“We’ve observed robust demand for purpose-built student accommodations, both on and off-campus,” Farrell said. “These facilities cater to students’ desires for modern amenities, prime locations and environments that balance academic and social needs.”

Similar to all projects in the development pipeline, student housing does face challenges with capital costs and construction expenses, she continued. Yet, those that are well-planned and located in key markets continue to pencil.

“For discerning investors, this sector represents more than just occupancy rates—it’s a strategic long-term play,” she said. “Student housing has demonstrated remarkable resilience during economic downturns, offering a potentially recession-resistant option within the real estate market.”

Projects around the nation

As deals continue to pencil, activity can be seen across the nation in the student housing sector.

In Tallahassee, Fla., construction financing was just secured for a 277-unit, 782-bed project. Scheduled for completion before the academic year of fall 2027, Up Campus Student Living’s project will feature luxury units and amenities.

Also in Knoxville, Tenn., Novare Group and Batson-Cook Development Co. recently broke ground on a 271-unit garden-style community, less than a half-mile from Route 162 and Interstate 40. Leasing is expected to begin early next year. The community, which broke ground in December, will serve local residents working at the University of Tennessee, Oak Ridge National Laboratory, Covenant Health and Knox County Schools.

Meanwhile, at Cal Poly, construction is set to begin late this year on one of California’s most ambitious projects. FullStack Modular is partnering with the University to bring 4,200 new beds to the San Luis Obispo campus. The first phase of units is expected to be ready for occupancy by fall 2026.