The Element, a student housing property near Sacramento State University, is the largest completed acquisition to date from investment firm NB Private Capital.
SACRAMENTO, CA—NB Private Capital has closed on the 792-bed The Element, a student housing property near Sacramento State University in a deal valued at approximately $38.5 million.
The property, built in 2003 and renovated in 2016, was offered as a Delaware Statutory Trust and eligible for 1031 investors. The property was 100% occupied upon syndication with 12-month leases. The initial total offering price was $91.8 million, of which approximately $38.5 million came from investor equity.
Aliso Viejo, CA-based NBPC is founded by Brian Nelson, previously of Nelson Brothers Professional Real Estate. The company specializes in the acquisition, financing and ownership of real estate investments in the niche area of student housing. NBPC currently manages more than $600 million in multi-family housing real estate.
The property has 216 units with a mix of one-, two-, three- and four-bedroom floor plans. As part of the renovation two years ago, The Element features stainless-steel appliances, common area furniture, window treatments and additional amenities like a resort-style pool, high-tech fitness center, study lounge, tanning bed, covered half-court basketball, lighted sand volleyball court, game room and private campus shuttle.
“2018 has been an incredible year for the NB Private Capital team. With the completion of The Element syndication we have raised $64 million year-to-date and $40 million since our re-introduction to the investment world as NBPC,” says company founder and president Brian Nelson.
Nelson adds in relation to the Exchange deal, “Finding and buying quality real estate has always been at the core of our model and The Element is no exception. The city of Sacramento is growing and has led the nation in rental growth rates over the last couple of years. The same is true for Sacramento State University, which has been setting enrollment records year-after-year. To be able to buy a class-A property in this market, with best-in-market amenities, is a real win for us.”
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
