LUBBOCK, TX-McKinney Properties Inc. has re-entered the Texas student housing market, paying $16.25 million for U Lofts, a 299-unit property near Texas Tech University. The mid-rise property also marks the Pittsburgh, PA-based student housing owner’s first acquisition here.

“We highly value locations that are within walking distance to campus, and U Lofts is possibly the best located student housing property at Texas Tech University,” says Nathan Lutz, director of acquisitions for McKinney Properties. “The school has demonstrated continued enrollment growth over the last few years and has projected enrollment growth for the next five years. In addition, [Tech] has continued to invest in the growth of its campus and facilities to support its enrollment growth.”

Built in 1968 and renovated between 2008 and 2010, U Lofts contains 334 bedrooms in 144,000 square feet. Situated on 2.75 acres across the street from the university, it contains 11,000 square feet of commercial space and a 500-space parking garage. The seven-story property also has a cell phone tower, which generates additional income.