Student Housing Daily - December 12 - Investcorp acquires $300 million in student housing

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NEWS ROUNDUP

ACQUISITION: Investcorp acquires $300 million in student housing. Investcorp has expanded its student housing portfolio by acquiring four properties across Texas, Kentucky, and Oklahoma, totaling nearly 3,000 beds, for over $300 million. Ryan Bassett, Investcorp’s Head of U.S. Residential Acquisitions, stated that the firm has developed robust business plans for each community to enhance the properties over time. Michael O’Brien, Co-Head of Real Estate North America at Investcorp, noted that the firm has been an active buyer and seller in the U.S. residential real estate market, with over $1 billion in U.S. multifamily acquisitions in the past 10 months and approximately $1.3 billion in multifamily property sales.

DISPOSITION: CBRE sells 552-bed community. CBRE has facilitated the sale of The Den, a 552-bed student housing community near the University of Missouri in Columbia. The property was acquired by a joint venture between The Michaels Organization and Capital Solutions Inc. from Hamilton Point Investments for an undisclosed amount. The transaction was managed by CBRE's National Student Housing team, including Jaclyn Fitts, William Vonderfecht, and Casey Schaefer, in collaboration with Matt Bukhshtaber from CBRE's St. Louis office.

DEVELOPMENT: The University of Rhode Island announces plans to build more student housing. The University of Rhode Island (URI) is advancing plans to construct additional on-campus housing to accommodate over 1,100 undergraduate and graduate students. URI has selected Gilbane to develop, finance, design, build, and operate the new residential facilities on leased university land. The project is currently in the feasibility study phase, with construction anticipated to commence in fall 2025. "We know many of our students want to live on campus and value the many benefits of on-campus living, including convenient access to campus resources and amenities" - Ellen Reynolds, VP for Student Affairs.

DEVELOPMENT: Sundt begins redevelopment of two residence halls at California State University. Sundt Construction has commenced the redevelopment of two residence halls at California State University, Fullerton. This project will replace the Jewel Plummer and Cobb Residence Halls, the university's first on-campus housing facilities built in 1979. The new 175,000-square-foot complex will provide 500 beds in two-bedroom units, ensuring bed-to-bath parity for residents. Additionally, it will feature two-bedroom apartments for staff, one-bedroom units for resident advisors, shared amenities on the ground floor, an updated connection to the university’s arboretum, and an 82-space parking lot.

DEVELOPMENT: The University of Idaho proposes $163 million student housing plan. The University of Idaho (UI) is moving forward with a $163 million initiative to enhance on-campus student housing, following approval from the Idaho State Board of Education on November 21, 2024. The project includes the construction of new South Hill Apartments on Sweet Avenue, offering 251 beds for single graduate students and 150 beds for families, with an expected opening in August 2026. Additionally, UI plans to renovate the Wallace Residential Complex, Theophilus Tower, and the Elmwood Apartments, with phased completions anticipated between August 2025 and August 2027.

DEVELOPMENT: Hilton partners with American Campus Communities. Hilton has partnered with American Campus Communities (ACC) to enhance the student living experience. ACC residents who are Hilton Honors members will receive up to 15% off Hilton's best available room rates and, starting this spring, an expedited path to Hilton Honors elite status, granting access to exclusive global travel benefits. Kimmy Kelley, ACC's Chief Marketing Officer, emphasized the company's commitment to enriching students' academic and personal journeys, stating that the partnership with Hilton offers residents valuable perks to create lasting memories. Mark Weinstein, Hilton's Chief Marketing Officer, noted that the collaboration aims to enhance ACC residents' experiences throughout their college years, whether during breaks, away games, or weekend trips.

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