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Student Housing Daily - February 11 - Florida SBA acquires assets for $651 million

Student Housing Daily - February 11 - Florida SBA acquires assets for $651 million

Florida SBA spends $651 million. FullStack/Cal Poly to build 4,200 beds. Fayetteville approves Subtext complex. Newmark arranges $385 in financing. Gilbane hires new CEO. Preleasing slowed down in latter part of 2024. Four new student housing deals.

Aid Sopjani & Matt H
February 11, 2025

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NEWS ROUNDUP

ACQUISITION: Florida SBA acquires assets for $651 million. The Florida State Board of Administration (SBA) has made $651.4 million in strategic investments across various specialty property sectors, including student housing, data centers, medical offices, and single-family rentals, through a mix of acquisitions and new commitments. A significant portion of the SBA's investment includes a $150 million commitment to a new U.S. student housing joint venture with Stockbridge and Landmark Properties, where the pension fund will hold a 98% stake. Additionally, SBA executed two student housing transactions with Stockbridge and Landmark, including a $96.6 million recapitalization of the 602-bedroom Retreat East in Orlando and the $51.7 million acquisition of the 416-bed Retreat Tampa, an off-campus housing complex near the University of South Florida.

DEVELOPMENT: FullStack and Cal Poly to build 4,200 beds. California Polytechnic State University has teamed up with FullStack Modular to develop 4,200 new student housing beds at its San Luis Obispo campus in a $1 billion project, marking the first large-scale modular construction initiative within the California State University system. The project, which includes the construction of nine modular residence halls and the renovation of existing student housing, is set to be completed by 2030. The university has enlisted Steinberg Hart Architects as the design firm and Whiting-Turner as the design-build contractor.

DEVELOPMENT: Fayetteville approves Subtext complex. The Fayetteville City Council has unanimously approved a resolution to settle a dispute over a water line upgrade, allowing Subtext, a St. Louis-based developer, to move forward with the VERVE student housing complex. The 8-0 vote grants an appeal of the Planning Commission’s previous rejection of the development plan, which failed to pass last month due to a 4-4 deadlock over the water line issue. The five-story residential complex, featuring an additional basement level, will contain 272 units with 827 bedrooms. The project also includes a seven-story parking garage with 540 spaces, small retail space, and a publicly accessible dog park at Putman Street and Hill Avenue. Mitchell Korte, representing Subtext, emphasized that the development team has been working on the plan for 18 months with a focus on collaborating with neighbors and promoting future development.

FINANCING: Newmark arranges $385 million in acquisition financing. Newmark has arranged $385 million in acquisition financing for a nine complex portfolio. Newmark’s Jordan Roeschlaub, Jonathan Firestone, Christopher Kramer, Peter Greissinger, and Peter Mavredakis executed the transaction.

PEOPLE MOVES: Gilbane hire new CEO. Gilbane has appointed James Patchett as its new President and CEO, effective February 6, 2025. Patchett brings a wealth of experience from both the public and private sectors, including leadership roles at the New York City Economic Development Corporation (NYCEDC), Acheson Doyle Partners Architects, McKinsey & Company, and Goldman Sachs.

READ: Preleasing of student housing slowed down in back half of 2024.

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