$220M JV Formed to Develop Student Housing

CHARLOTTE, NC-Locally based Campus Crest Communities and Chicago-based private equity firm Harrison Street Real Estate Capital have formed a $220 million joint venture to develop 10 student living communities near university campuses throughout the US. The partnership is fully financed by Harrison Street Real Estate Partners II, a $430 million fund that was raised over the summer, says Chris Merrill, managing partner of HSREC.

The off-campus housing communities will be approximately 218,000 square feet with 504 fully furnished bedrooms, each with its own private bathroom and walk-in closet. Amenities at the sites will include resort-style swimming pools, 24-hour gyms, fire pits, tanning booths and clubhouses. The housing also includes controlled-access gates and 24-hour, seven-day security by a community assistant. Average rental rates range from $400 to $600 per bed per month on 12-month leases, a price comparable to what students would pay if living on campus, says Merrill.

Ground has broken on three of the projects and there are plans to begin five more in the next few months to be delivered during the 2009-2010 academic year. The last two sites of this batch of housing will break ground in the third quarter of 2009 and be delivered for the following academic year. Between then and now more sites could be added to the drawing board, says Merrill.