MONTREAL—Campus Crest Communities Inc. has entered the Canadian student housing market through a joint venture with Beaumont Partners SA. In their first deal, the pair has bought the Delta Centre-Ville Hotel, a 711-room property in this city's Downtown, for $60 million. They plan to convert the 33-story asset into an upscale student housing tower, with a mix of single and double units and expected delivery for the fall 2014 semester.
According to the JV, the acquisition was made at a discount to replacement cost. Charlotte, NC-based Campus Crest is the minority partner in the joint venture, with a 20% stake. The firm and Beaumont plan to obtain financing later this year to fund the redevelopment.
According to Ted W. Rollins, co-chairman and chief executive officer of Campus Crest, “We've been evaluating the Canadian market for years and believe this is the right opportunity with the right partner to bring our unique brand of student housing to our North American neighbors. Not only will this allow us to expand our operational footprint, but we will be entering one of Canada's most prestigious academic cities with a rich cultural heritage and serving nearly 200,000 students.”
The Delta Centre-Ville sits above the Square-Victoria Metro Station stop and has access to McGill University, Concordia University and L'École de Technologie Supérieure, a part of the Université du Québec network, which collectively serve more than 81,500 full-time students. It's within walking distance of Old Montréal, the Bell Centre sports and entertainment complex, the Central Train Station and other dining and cultural attractions.
“The Delta Centre-Ville Hotel acquisition provides a unique entry point to the Canadian student housing market,” says Toby Selman, managing director of the real estate group of Beaumont Partners, an international private equity and real estate investment company based in Geneva and London. “We believe that Campus Crest is the natural partner for us and immediately positions us as a leader in the Montréal market. We look forward to significant additional investment in Montréal and expanding our relationship with Campus Crest here as well as in other Canadian markets.”
The student housing tower will offer a variety of high-end features for undergraduate and graduate students, including such amenities as a media lounge, fitness center, library and a technology center. It will also have several common areas including numerous study lounges, regularly scheduled activities for residents and a professional staff that includes a general manager, leasing manager, community assistants and a courtesy officer for security purposes. Campus Crest will manage the property.
This tower also marks Campus Crest's second development of an urban high-rise project. Earlier this year the company entered into a JV to build a 33-story, 850-bed student housing tower in University City, PA, also targeted for a fall 2014 completion.
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Sule Aygoren
Aygoren oversees the editorial direction and content for ALM’s Real Estate Media Group, including Real Estate Forum and GlobeSt.com. In her tenure with ALM, she’s held roles of increasing responsibility, including Managing Editor. Aygoren has received several awards for her coverage including Best Trade Magazine Report from the National Association of Real Estate Editors and the James D. Carper Award for Young Journalists. Under her direction, Forum has received four national NAREE awards for Best Commercial Real Estate Trade Magazine.
