The properties are Capital Garage and Ramz Hall, both in Richmond, VA, Campus Club in Tampa and the Preserve at San Luis in Tallahassee, FL. They are being marketed by Jones Lang Lasalle's Alex Quintana, Jeff Morris and Jubeen Vaghefi.
"We expect the property to be broken up," Alex Quintana, managing director at JLL, tells GlobeSt.com. "They can be bought as a portfolio, but our guess is the way the market is today, it's better to give investors the option of breaking it up."
Capital Garage has 36 loft-style units near the Virginia Commonwealth University. The buildings all have controlled access and are predicted to be fully leased by the fall. Ramz Hall, also near VCU's campus, is a five-story building with 84 two-bedroom units and four studio apartments. The top four residential stories are 100% master-leased by VCU through the 2009-10 school term. The bottom floor has more than 15,000 sf of retail space, which is fully leased. Capital Garage is two blocks from the building. JLL plans to market the Richmond properties together, with Quintana explaining "the trend in the market right now is smaller deals."
Campus Club consists of two class A four-story buildings situated 1.1 miles from the University of South Florida. They are predicted to be 100% leased by the fall term, according to a JLL press release.
The Preserve at San Luis is a class "A" townhouse project close to Florida State University. The 29 two-story buildings' amenity package includes a clubhouse, tanning beds and a cyber cafe. "There are some supply issues in the Florida state, Tallahassee market," Quintana explains, "so they're expected to be somewhere between 90% and 92%" leased for the fall semester.
Quintana says ING is selling the portfolio to maximize its sales potential with the retail section of Ramz Hall fully leased, 100% lease-up in the Capital Garage and anticipated full leases of its Tampa property. JLL plans to find a buyer by mid to late August and close around October.
"The best time to sell student housing assets is when you have good lease-ups," Quintana says. "And on top of that, with what's going on in the market, it's tough to find debt and these have very good loans on them and we felt these properties could get a pretty good return on them."
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