CHICAGO—A joint venture of The Scion Group, an owner-operator of student housing, and Virtus Real Estate Capital, a private equity firm, have just acquired a student housing portfolio from American Campus Communities totaling 2,360 beds in 628 apartment units. The $118 million portfolio includes The Village at Blacksburg, a 1,056-bed community serving Virginia Tech, State College Park, a 752-bed property serving Penn State University, and University Pines, a 552-bed community serving Georgia Southern University. Scion will manage the venture and the properties. The joint ventures of Scion and Virtus now own eight student communities. Scion and Virtus officials say they will invest over $6 million to upgrades the properties, which were acquired with mortgage financing from Fannie Mae issued by M&T Realty Capital Corp. and arranged by the Indianapolis office of Holliday Fenoglio Fowler LLP.

“We are pleased to partner with Virtus in this highly strategic acquisition in three leading university markets,” says Robert Bronstein, president of Scion. “This transaction underscores our vibrant partnership, Virtus' strong status as an investment partner and the key role Virtus has continued to play in the ongoing expansion of our business.”

The Village at Blacksburg and State College Park, both located less than a mile from their respective campuses, have two- and four-bedroom apartments and will receive significant upgrades to interiors, grounds and amenities. Virginia Polytechnic Institute and State University, commonly known as Virginia Tech, was founded in 1872 and enrolls over 31,000 full-time students, including nearly 29,000 at its 2,600-acre main campus in Blacksburg. Penn State has the largest enrollment in Pennsylvania and one of the largest in the United States, with over 45,000 students at its 5,400-acre University Park flagship campus in State College.