CHICAGO, VANCOUVER, BC—QuadReal Property Group, CA Student Living and GI Partners have formed a joint venture to acquire, develop and manage student housing at select universities throughout the US. Vancouver, BC-based QuadReal has invested $600 million of equity into the joint venture. CASL and GI are co-investors and general partners, with CASL serving as the operating partner.
CASL has acquired 5,000 university beds and developed another 20,000 new beds since its founding in 2004, making it one of the most active infill student housing developers in the country. The joint venture's initial portfolio includes four properties developed and managed by CASL, and six new developments that will open in the next few months.
Many Canadians are looking for ways to invest in US real estate, JJ Smith, president of CA Student Living, tells GlobeSt.com, and this deal gives QuadReal “immediate scale in a sector that is undergoing rapid growth, provides stable cash flow, and is very resilient during recessions.”
Students living in on- and off-campus housing increasingly demand walkable locations with modern amenities such as fitness centers, study lounges and communal areas, as well as features like high-speed internet. And CA Student Living concentrates on developing class A+ housing at the nation's largest state schools, all of which are seeing stupendous growth.
The four existing developments are at the University of Kansas, the University of Florida, the University of Georgia and Florida State University. The other six about to open are at Arizona State University in Tempe, Colorado State University in Ft. Collins, University of Missouri in Columbia, University of Mississippi in Oxford, University of Nevada in Reno, and the University of Alabama in Tuscaloosa.
The portfolio is already 80% preleased, Smith adds, a good sign of its overall strength. “The expectation is that they will be very close to 100% leased by the time school starts.”
The venture will most likely continue CA Student Living's strategy of developing infill locations that allow residents pedestrian access to their respective campuses. Infill locations at these types of large schools typically mean high land costs, Smith adds, and that makes it almost certain that it will continue developing class A+ housing. However, the venture could develop less expensive housing as well. “We're keeping our options open.”
CHICAGO, VANCOUVER, BC—QuadReal Property Group, CA Student Living and GI Partners have formed a joint venture to acquire, develop and manage student housing at select universities throughout the US. Vancouver, BC-based QuadReal has invested $600 million of equity into the joint venture. CASL and GI are co-investors and general partners, with CASL serving as the operating partner.
CASL has acquired 5,000 university beds and developed another 20,000 new beds since its founding in 2004, making it one of the most active infill student housing developers in the country. The joint venture's initial portfolio includes four properties developed and managed by CASL, and six new developments that will open in the next few months.
Many Canadians are looking for ways to invest in US real estate, JJ Smith, president of CA Student Living, tells GlobeSt.com, and this deal gives QuadReal “immediate scale in a sector that is undergoing rapid growth, provides stable cash flow, and is very resilient during recessions.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
