The REITs, in the meantime, like the larger assets. They also like location-driven assets. "Proximity to campus is the A-number-one sweet spot for those REITs," notes Travis Prince, managing director, student housing services with Colliers International. "Some of those REITs are actually pruning their inventory. They're selling properties further off-campus and reallocating those dollars to properties that are closer to campus."

This means some of these "distant" properties fall into the hands of smaller buyers. But purpose-built student housing isn't the only product owned by these buyers.

"Many older buildings, operating as conventionally leased apartments that are still close to campuses; those are owned by the smaller players," says Dorothy Jackman, Colliers International's managing director, student housing services.

Though the experts speak in general terms about the private, smaller buyer, they acknowledge that getting deeply into the buyer profile is difficult. "We know that the REITs and larger institutions like the nice, new class A stuff; the purpose-built housing that's near campuses," notes Chris Epp, co-director of Apartment Realty Advisors' student housing group. And, it's understood that some of the older complexes that are located near campus tends to go toward regional or national buyers. "But there's still quite a bit of student housing that's fragmented; this is what's bought by smaller groups; the mom-and-pops," Epp says.

Adding to this mix is that the there is no standard "profile" for these smaller groups. "These can be guys who, when they were still in college, looked at a plethora of deals in their college towns and slowly amassed a portfolio after graduation," Fitts says. Then there are the syndicators with larger portfolios – 10,000 to 15,000 beds. "But they're still private," Fitts notes.

Nor are these mom-and-pops, syndicators or groups going away anytime soon. Even with the larger players making a splash with huge deals, the experts say that the smaller buyers will still be around.

"Sometimes those properties are just too small for the larger guys to own," Jackman observes. "I don't think we'll ever see a time when there's no opportunity for the smaller developer or owner."

She goes on to explain that what could happen, however, is that the larger players and REITs are likely to partner with the smaller owners and developers in the future. While the REIT can provide the capital and development muscle, the local entities provide the knowledge. "The local guy will know more about every piece of dirt, scrape or building more than those who don't live in the area and aren't on the ground every day," Jackman adds.