Student Housing Investments May Hit Record
Investors are snatching up more student housing properties than ever before. Indeed, “Last year was the biggest year ever, investment sales-wise,” Fred Pierce, president and CEO of Pierce Educational Properties, told the National Real Estate Investor. But this year is on pace to be even bigger.
Read more: Student Housing Is Booming
Investors have purchased more than $3 billion in student housing properties from the start of 2016 through mid-May. That is up from $2.1 billion over the same time period in 2015.
“Interest in the student housing sector is as high as it’s ever been and is increasing,” says Doug Opalka, senior managing director for Holliday Fenoglio Fowler.
One giant deal recently is coming from a partnership of institutional investors – including the Canada Pension Plan Investment Board, GIC, and The Scion Group – which is about to close a $1.4 billion deal to buy University House Communities Group Inc. The company owns 13,000 student housing beds.
“That is going to create additional investment sales,” says Pierce, adding that big portfolio sales often lead to spin-off transactions.
What’s more, the private fund manager Harrison Street recently acquired Campus Crest for $1.9 billion. Campus Crest owned 38,000 student housing beds.
Student housing is typically viewed by investors as a stable investment with consistent yields and a sector that tends to be more resistant to any economic downfalls, the National Real Estate Investor reports on the draw.
Source: “Buy, Buy, Baby,” National Real Estate Investor (Aug. 3, 2016)
No comments:
Post a Comment