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Student Housing Daily - October 31, 2024 - Preiss acquires 972-bed community

Student Housing Daily - October 31, 2024 - Preiss acquires 972-bed community

The Preiss Co. acquires 972-beds. Vesper expands portfolio. ACC delivers six. Harrison Street raises $2.5 billion. JLL arranges financing for UC Berkeley property. BridgeInvest refinances SC development. Four new student housing deals.

Matt H & Aid Sopjani
October 31, 2024

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NEWS ROUNDUP

ACQUISITION: The Preiss Co. acquires 972-bed community. The Preiss Co., led by John Preiss, has acquired Elevate 231, a student housing community in Columbia, MO. The property, which has been rebranded to The Collective at Columbia, sits on more than 50 acres and features 318 units and 972 beds. Colliers’ Sean Baird and Jonathan Holt brokered the sale, whereas Newmark’s Ben Roelke and Ian Walker arranged the acquisition financing.

ACQUISITION: Vesper expands portfolio with Texas acquisition. Vesper Holdings has acquired Gateway at Denton, a 696-bed community near the University of North Texas. The company is planning to invest over $4 million renovating the property. The seller was represented by IPA’s Peter Katz. Gregg Wallace at AMA Financial and Steven Hamm at KeyBank arranged the transaction financing, which was provided by Freddie Mac. Founded by Elliot J. Tamir and Isaac J. Sitt, Vesper Holdings has the 8th largest student housing portfolio in the US.

DEVELOPMENT: ACC delivers six developments across the US. American Campus Communities has successfully delivered six new student housing developments: Meadow Apartments in Princeton, NJ; Casa Del Valle in Phoenix, AZ; The Ridge in Atlanta, GA; Xučyun Runway Graduate Student Apartments in Berkeley, CA; East Campus Graduate Apartments in Austin, TX; and Graduate Junction in Cambridge, MA. These communities, which opened for the 2024-2025 school year, offer a total 3,867 beds and cost $855 million to develop. “This latest portfolio of student communities meets the high demand for quality housing in key university markets while contributing to university sustainability initiatives, promoting inclusivity and creating student wellness spaces.” - James Wilhelm, CDO, ACC. In addition to these properties, ACC’s current pipeline consists of more than 9,500 beds in the pre-development and development stages.

FUNDRAISING: Harrison Street secures $2.5 billion in equity. Harrison Street has closed its ninth US opportunistic real estate fund, securing $2.5 billion in equity. The fund, which will invest in student housing, senior housing, self storage and other alternative assets, received strong support from existing fund series investors who accounted for around 60% of total commitments. Christopher Merrill and Rob Cook of Harrison Street claim that this new fund is a testament of the company’s resilience and innovative investment approach.

FINANCING: JLL arranges $36 million in acquisition financing for UC Berkeley property. Hawkins Way Capital acquired Varsity Berkeley, a 308-bed student housing property near UC Berkeley, for $46.3 million ($150,324 per bed). JLL Capital Markets secured $36 million in financing for the transaction through Limekiln Real Estate Investment Management. The JLL Capital Markets team representing the borrower was led by Brandon Smith, Annie Rice, and Gyasi Edmondson, while IPA’s Peter Katz and Sal Saglimbeni represented the seller. FCL Management will manage the property, which be rebranded as FOUND Study Downtown Berkeley.

FINANCING: BridgeInvest refinances SC student housing development. BridgeInvest refinanced The Rowan, a 1,002-bed community in Columbia, SC, for $30 million. Managed by Asset Living, the development spans 24.18 acres and includes a clubhouse, pool, and shuttle service to the University of South Carolina. According to Alex Horn, managing partner at BridgeInvest, “the company is actively looking for opportunities to provide borrowers with financing options.”