TEMPE, AZ-In what is being called the fourth highest priced transaction of a single asset, purpose-built student housing property in US history, Inland American Communities Group Inc. acquired the 637-bed Hub on Campus student housing project, which serves Arizona State University. The Dallas-based buyer paid seller and developer Core Campus LLC $103 million for the property, which had opened in time for the 2013-2014 school year.
Located at 323 E. Veterans Way, Hub on Campus is a 19-story, 269-unit core housing property with many amenities including a fitness center, steam room, study lounges and penthouse suites with private hot tubs.
“Hub on Campus is hands down the most extraordinary piece of real estate we've had an opportunity to sell,” says Apartment Realty Advisors National Student Housing Group's Christopher Epp, who negotiated the transaction on behalf of the seller. “Our client nailed all aspects of what constitutes a perfect student housing development. The combination of an irreplaceable location, groundbreaking architecture, substantial ad valorem tax abatement and additional land for significant future development led to one of the most picture-perfect sales stories we've ever worked with.”
The team representing Core Campus LLC included Chris Bancroft, and Meredith Wolff with ARA's Student Housing Group and Brad Goff and David Lord with ARA's Phoenix office.
Hub on Campus leased up very quickly during construction and closing in on 100% preleased at sale, with excellent leasing velocity going into the start of the 2013-2014 academic year. The asset was sold shortly after issuance of Certificate of Occupancy and was priced off the fall 2013 rent roll.
Epp says that, as part of the sales process, Core Campus reached out to "a limited number of highly qualified parties." As such, the seller and buyer established a solid relationship.
“Inland performed exceptionally well and closed the transaction despite several complex factors including the conveyance of a future development opportunity, calculation of future tax abatements and valuation of on-going retail leasing.” Bancroft explains. “In the end, the asset location and extraordinary build-out was a strategic fit for Inland's student housing platform going forward.”
Core Campus also has projects in Oxford, MS; Tucson, AZ and Columbia, SC. The company is under contract in several markets including Madison, WI; Eugene, OR; East Lansing, MI as well as others.
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