The academic year may be winding down, but student housing deals are heating up.
Last month, student housing owner and operator The Scion Group and affiliates of the private equity giant Ares Management Corp. formed a partnership to invest in off-campus student housing, citing their “shared conviction in the long-term strength of the student housing sector.” Their first purchase was a 12-property, 7,578-bed portfolio spanning universities across the country, bought from Harrison Street Asset Management for about $910 million.
Over the past decade, institutional and private investors have become increasingly interested in student housing, according to a May analysis from Northmarq. Student housing can offer higher yields and more frequent rent resets, although leasing timelines are more concentrated and performance is closely tied to the university. Capital has also become more selective, and investment activity tends to concentrate by larger universities with limited on-campus options.
Despite these challenges, student housing is continuing to change hands. Here are some of those transactions so far this June:
Sterling College Station
Buyer: PCCP and The Dinerstein Cos. joint venture
Seller: Mountain Capital Partners and Homestead
Amount: Not disclosed
Location: College Station, Texas
Beds: 1,128
Los Angeles-based PCCP and Houston-headquartered The Dinerstein Cos. have purchased two adjacent communities that serve Texas A&M University students, according to a June 8 press release from Dinerstein. Sterling College Station, the new combined asset, consists of two cottage- and garden-style buildings with 350 total units featuring one-, two- and four-bedroom floorplans.
On-site amenities include a basketball and a beach volleyball court, a cabana with an outdoor grilling station, a 24-hour fitness center, private study rooms, a 24-hour business center with cyber cafe, a clubhouse with a community kitchen, Wi-Fi, a game lounge and pool tables. Its low-density configuration differentiates it from other options near campus, per a separate release, and offers students larger layouts and more expansive amenity spaces.
The buyers are planning comprehensive renovations and an operational improvement program, per the release. Renovations include upgraded kitchens and bathrooms, new flooring and furniture, fitness center improvements, refreshed study and clubhouse spaces, pool upgrades, access control enhancements, pickleball courts, exterior repainting and other common area improvements. The JV will also combine operations into a single community using Dinerstein’s property management platform.
Student housing in Florida, Arkansas
Buyer: Hackberry Lane
Seller: Various
Amount: Not disclosed
Location: Gainesville, Florida, and Fayetteville, Arkansas
Beds: 400
New York City-based student housing operator Hackberry Lane recently closed on six transactions in two markets that collectively represent about 400 beds across townhome, cottage and boutique apartments, according to a June 5 press release. The purchases, which serve University of Florida students in Gainesville and University of Arkansas students in Fayetteville, bring Hackberry's total owned portfolio to approximately 2,000 beds since the firm's inception in 2023. The new properties are all located within walking distance to campus.
The Fayetteville acquisitions are the firm's first in that market and represent the seventh market where Hackberry has established a presence, per the release. The student housing industry is concentrated on mid- and high-rise purpose-built development, but “Hackberry targets the more fragmented shadow market, where assets remain largely in the hands of local owner-operators.”
Clemson Village
Buyer: Balfour Beatty Communities
Seller: Blue Vista
Amount: $26 million
Location: Clemson, South Carolina
Beds: 288
Balfour Beatty’s real estate arm bought a student housing community that serves Clemson University in Clemson, South Carolina, according to a June 2 release. Its low-density duplex design offers more privacy and space than traditional apartment-style student housing.
Clemson Village consists of 96 three-bedroom, three-bathroom units that are situated on 18 acres. Each unit is fully furnished with private bedrooms and bathrooms and expansive living spaces. Its amenities include a clubhouse, a resort-style pool, a fitness center, study areas and outdoor recreation spaces. The buyer is planning a series of enhancements “to further elevate the resident experience and support the property’s long-term performance.”
This acquisition expands Balfour Beatty’s presence in high-performing university markets, per the release. Clemson Village is its second purchase within the NCAA Division I Atlantic Coast Conference, following its 2023 acquisition of Oktiv, which serves Florida State University students.
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