Moontower is One of the Largest Single-Asset Student Housing Sales of 2020
Moontower sold to Ocean West Capital Partners and Landmark Properties for an undisclosed price, but at one that is among the top five largest single-asset sales in terms of transaction value in the student housing space this year.
AUSTIN, TX—A new 166-unit 567-bed luxury student housing asset, Moontower, is located in the West Campus neighborhood across the street from the University of Texas at Austin. The asset is 100% pre-leased for the 2020-21 academic year. UT Austin is the seventh largest university in the country with more than 51,000 students enrolled as of Fall 2019.
The property recently sold at an undisclosed price, but at one that is among the top five largest single-asset sales in terms of transaction value in the student housing space this year. Moontower traded to a partnership led by Los Angeles-based Ocean West Capital Partners and Athens, GA-based Landmark Properties, a student housing asset developer.
Ryan Lang, Newmark vice chairman and head of its student housing group, along with Jack Brett, associate director, represented the seller, Austin-based Lincoln Ventures. Ben Harkrider, Newmark transaction manager, provided crucial support to assist on the transaction.
“The asset is absolutely pristine and tremendously positioned within the UT Austin submarket,” said Lang.
Moontower is the latest high-rise to dot the West Campus landscape. Constructed in 2020, the amenities include a rooftop amenity deck with campus and downtown Austin views, yoga and spin studios, collaborative and private study spaces, and fully furnished units.
“The asset is walking distance to all classrooms and entertainment along Guadalupe,” Lang tells GlobeSt.com. “The asset also unique in that it offers unobstructed views of the UT Tower, incorporates a rooftop pool and lounge, and boasts state-of-the art fitness center and study area.”
Student housing pre-leasing has mostly maintained momentum, but operators have pulled back a bit on rent growth, predominantly at properties closest to campuses, according to a recent RealPage report. Since mid-March, when college campuses started closing due to the COVID-19 pandemic, pre-leasing for student housing continued to gain momentum, though at a slower pace than in past years. As of July, 82.2% of beds at the core 175 universities tracked by RealPage were pre-leased for the Fall 2020 term. That rate fell about 340 basis points below the July 2019 rate.