Dive Brief:
- Student housing owner and operator The Scion Group and affiliates of the private equity giant Ares Management Corp. have formed a partnership to invest in off-campus student housing, Scion said in a May 20 press release.
- The firms’ first purchase is a 12-property, 7,578-bed student housing portfolio spanning universities across the country, bought from Harrison Street Asset Management for about $910 million. Chicago-headquartered Scion will serve as operating partner.
- The partnership reflects the firms’ “shared conviction in the long-term strength of the student housing sector” and will focus on high-quality assets in markets with “strong enrollment fundamentals and limited new supply,” according to the release.
Dive Insight:
The acquisition reflects broader structural trends shaping the student housing industry, per Scion, including “consolidation of a historically fragmented market and the continued movement of institutional capital into operationally intensive, need-based real estate.” Scale matters more than ever, a Scion spokesperson told Multifamily Dive in emailed comments.
“Larger platforms can invest in technology, data analytics, revenue management, and centralized operations in ways that create efficiencies and improve performance,” the Scion spokesperson said. “As the sector has become increasingly institutionalized, we've seen greater demand for experienced operators with the scale and expertise to execute across multiple markets.”
The fundamentals supporting student housing remain “very compelling,” according to the Scion spokesperson. Many flagship public universities continue to experience strong demand, while new supply remains relatively constrained in many markets.
“At the same time, student housing is a highly specialized business,” the spokesperson said. “While it shares similarities with conventional multifamily, the resident lifecycle, leasing patterns, marketing approach, turnover process, and operating model are all distinct. Success requires a purpose-built platform designed specifically for this customer base.”
The newly purchased portfolio is located in these university markets:
- University of Notre Dame — South Bend, Indiana
- George Mason University — Fairfax, Virginia
- James Madison University — Harrisonburg, Virginia
- Arizona State University — Tempe, Arizona
- Auburn University — Auburn, Alabama
- Texas State University — San Marcos, Texas
- Binghamton University — Binghamton, New York
- University of Florida — Gainesville, Florida
- The Ohio State University — Columbus, Ohio
- Tarleton State University — Stephenville, Texas
- University of North Dakota — Grand Forks, North Dakota
- Washington State University — Pullman, Washington
Scion is focused on operational execution with the new properties, according to the company spokesperson, and brings specialized capabilities in leasing, revenue management, marketing, technology and resident experience.
“By applying those capabilities consistently, we believe there are opportunities to enhance both property performance and the resident experience over time,” the Scion spokesperson said.
BMO bank led financing of the transaction, and Walker Dunlop advised, according to a press release. Kirkland & Ellis also advised on the partnership, the company said.
With the new purchase, the Scion Group’s portfolio now spans more than 105,000 beds across 161 communities in 90 markets throughout the U.S., making it the world’s largest owner of off-campus student housing, the company said in the release. Since 2016, Scion said it has deployed approximately $10.2 billion of capital, including $3.4 billion in the past 24 months.
Andrew Holm, head of U.S. Diversified Equity for Ares Real Estate, said the purchase underscores the Los Angeles-based firm’s ability to execute on large, complex opportunities via its scale, sector experience and operating relationships.
“By combining our scaled real estate platform with Scion’s strong capabilities, we believe we are well positioned to unlock value across this portfolio and capitalize on the continued institutionalization of the student housing sector,” Holm said in Scion’s release.
According to Yardi’s latest student housing market report, pre-leasing activity for the 2026 academic year across its sample 200 schools reached 65.5% in March, which was 340 basis points ahead of March 2025 and in line with March 2024. Annual rent in March grew to 0.8% — up from 0.4% in February — and the average advertised rent per bed rose to $928.
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