NEWPORT BEACH, CA—The two pure-play student housing REITs, American Campus Communities and EdR, each made the news last week at different ends of the off-campus vs. on-campus spectrum. ACC said it would pay $590.6 million to recapitalize and ultimately acquire seven off-campus properties from affiliates of Core Spaces and DRW Real Estate Investments. EdR announced the hiring of industry veteran Jason Taylor as SVP within the company's university partnerships team.

Both of these announcements dovetail with current student housing trends, as identified by Green Street Advisors. Analyst Ryan Burke tells GlobeSt.com that Austin, TX-based ACC's deal reflects the direction in which REITs and other institutional buyers are headed: namely, away from second-tier markets and lower rents. The four existing properties and three development sites in the Core Spaces/DRW portfolio all are in blue-chip submarkets within walking distance of schools such as the University of Seattle and Purdue University.

Burke, who covers niche sectors including student housing for Newport Beach, CA-based Green Street, also points to ACC's plan to finance the portfolio recap/acquisition in part through monetization of existing assets, whether through joint ventures or dispositions. “Recycling capital is going to be a key driver for the REITs going forward,” he says.