CLEVELAND—A not-for-profit affiliate of Cleveland State University has just sold Heritage Hall to Houston-based Asset Plus Companies, Inc., the largest privately owned student-housing company in the nation, for $4.5 million, another sign that public universities are increasingly turning to private companies to operate dorms. Newmark Grubb Knight Frank represented the seller, Euclid Avenue Development Corp., in the transaction. The new owner plans to convert the 140-dorm facility and YMCA into modern, private student housing.

Built in 1912, the 152,390 square-foot property is located at 2200 Prospect Ave. in the downtown campus district. The nine-story building sits on three acres, includes 175 parking spaces and has been the longtime home of the Downtown Cleveland YMCA, which plans to relocate across town in March 2016. Euclid finances and operates student housing for the university and bought the property in 2009 to eliminate a troubled loan.

“With its experienced student housing track record and solid reputation, Asset Plus emerged as the buyer that could fulfill our client's vision of transforming the property into an attractive, academic residence that will support the university population,” says NGKF managing director Richard Sheehan, who secured the buyer along with vice chairman Terry Coyne and analyst Michael Plaspohl in the firm's Cleveland office.