Dive Brief:

• Lincoln Property Co. has acquired Capstone Development Partners, including its Capstone Management Partners, a student housing and university facilities development and management company, according to a Nov. 17 press release. Terms of the sale weren’t disclosed.
• Capstone will join the Lincoln platform, strengthening the Dallas-based firm’s position in higher education infrastructure and enhancing its capabilities in the development, financing and operation of on-campus and university-affiliated housing as well as related real estate solutions.
• The Birmingham, Alabama-based firm will operate as Capstone Development Partners, powered by Lincoln. Chief Development Officer William Davis will step into the role of managing principal. Co-founders Bruce McKee and Jeff Jones will continue in their leadership roles at the company, supporting day-to-day operations, development delivery and the pursuit of new business. 

Dive Insight:

Since 1997, Capstone has partnered with more than 70 colleges and universities across the U.S. on projects from student housing to mixed-use campus developments. It has delivered over 50,000 on-campus and university-affiliated student housing beds nationwide, according to the news release. The firm also has experience in traditional off-campus housing.

“Capstone has long been a recognized leader in student housing and campus facilities development,” Alison Daubert, chief strategy officer at Lincoln Property Co., said in the release. “Their specialized expertise complements Lincoln’s national platform with robust resources, allowing us to better support higher education institutions with even greater experience and expertise.”

By partnering with Lincoln, Capstone will have the resources to accelerate growth and broaden its reach, according to Davis.

“With Lincoln’s support and comprehensive real estate capabilities, we are more capable than ever to assist universities in creating innovative, customized development and operational solutions that align seamlessly with their long-term goals,” Davis said in the release.

The student housing sector has seen several large transactions recently, most of which focus on off-campus activity. 

Last week, Landmark Properties and a wholly-owned subsidiary of the Abu Dhabi Investment Authority sold a portfolio of eight student housing properties, valued at over $1 billion. The buyer was a partnership of Morgan Stanley Investment Management and Global Student Accommodation, with funds managed by Morgan Stanley Real Estate Investing.

In September, Yugo announced that it acquired Austin, Texas-based student housing operator and real estate investment management firm Campus Advantage and its approximately 40,000 beds across 88 properties in 28 states.

One of the largest student deals in recent history occurred in 2022, when Blackstone’s Core+ perpetual capital vehicles — including Blackstone Real Estate Income Trust and Blackstone Property Partners — acquired American Campus Communities, the largest student housing owner, manager and developer in the U.S., in an all-cash transaction valued at approximately $12.8 billion, including the assumption of debt.

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