Chicago—Pioneer Acquisitions LLC has acquired a portfolio of 11 properties from the University of Chicago. The portfolio includes six graduate student housing properties, four faculty/staff buildings, one retail property and five land sites. The properties have a total of 520 beds, with the residential units averaging about 692 square feet, and are in the Hyde Park neighborhood within walking distance of campus.
The buyer acquired the properties free and clear of existing debt. It isn’t the first time Pioneer has acquired properties from the university. Late last year, the company closed on a 19-property, 676-unit multi-housing portfolio plus two land sites.
HFF marketed the both offerings on behalf of the University of Chicago. Associate director Michael Higgins and managing director Brian Kelly led the HFF investment sales team representing the University of Chicago.
The university had previously owned the properties for quite a while, but wanted to take advantage of the heated local market. According to James Hennessy, associate vice president for commercial real estate at the University of Chicago, the school’s acquisition of the buildings many years ago provided stable, quality housing for students, faculty and staff near campus.
“As demonstrated by the University’s sale of residential properties last summer, the real estate market in the areas surrounding campus is now strong enough to attract a number of potential investors and support a range of residential options,” Hennessy said in a statement. The university plans to retain 13 other buildings with residential units available to graduate students, faculty, other academic appointees, postdocs and staff.