"We work with multiple student housing partners because there are a lot of ways to invest and opportunities for different kinds of student housing," Merrill says. "The green cottage-style project is a little different than what other developers are doing for student housing, and it doesn't really exist in the marketplace, which is what we're looking to do. This is a different style of living and a unique project, with more open space, more common areas, a lot of green space and a 9,000-square-foot pool."

Nearly three-quarters of students at universities nationwide utilize off-campus housing, according to Merrill. "The theme of our business is need-based real estate, and when you look at student housing, there is a real need for off-campus housing across the company," he says. "The demographics support it and continue to go in our favor if you look at enrollment trends, students staying longer at college and the increased desire to be in off-campus housing."

Merrill says student housing is one asset class that has remained strong despite economic challenges in other sectors. "This is what the strategy of our firm is, focusing exclusively in education, health care and storage," he says. "We've been very active this year and have been very lucky that we've never invested outside of these defensive asset classes. We're very bullish on student housing, so this is really an opportunity to grow our portfolio."