Campus, Clarion Selling $550M Student Housing Portfolio
The five campuses encompass 2,642 beds and are 99% occupied.
A partnership between Philadelphia-based student housing operator Campus Apartments and Clarion Partners is selling a portfolio of five student housing campuses valued at an estimated $550M.
The portfolio encompasses 2,643 beds across 811 units in Ann Arbor, MI; Clemson, SC; Knoxville, TN and Tallahassee, FL, according to a report in greenstreet. The units average 1,150 SF and are 99% occupied.
CBRE, which is marketing the portfolio, says the owners will accept bids on the properties individually or in combination, but would prefer to sell the package to a single buyer. Amenities in the portfolio include fitness centers, pools, rooftop terraces and business centers.
In 2015, Campus Apartments and Clarion Partners closed on Campus-Clarion Student Housing Partners LP, a $402.9 million investment vehicle.
Clarion Partners Real Estate Income Fund (CPREIF) last month provided mezzanine loans subordinate to two senior loans originated by Blackstone Real Estate for the refinance of two student housing assets owned by Brickstone Partners and Daniel Otis, in Boulder, CO that were recently valued at more than $180 million. The senior loans were arranged by KeyBank Real Estate Capital.
The two properties, also referred to as the Brickstone Boulder portfolio, collectively consist of 312 units and 463 beds and are within walking distance of the University of Colorado Boulder (CU Boulder) campus.
The City of Boulder is home to more than 36,000 students at CU Boulder and has one of the nation’s largest concentrations of tech workers.
“Rental properties in Boulder seldom come to market, but the Brickstone Boulder portfolio was a rare opportunity to lend on two high-quality assets where institutional management provides value to students and their families,” said CPREIF Portfolio Manager Janet Souk, in a statement.
“As a significant investor in Boulder, Clarion Partners believes there are positive long-term tailwinds for the city’s student housing market, which has consistently maintained very high occupancy and shows no signs of slowing down,” Souk said.
The fall 2022 student housing report from Yardi Matrix showed 96.6 percent of bedrooms filled with 4.1% rent growth, GlobeSt. reported. Twelve universities had double-digit growth in pre-leasing levels compared to September 2021 with Washington State University (18.9 percent growth) and the University of Houston (16.4 percent) topping the list.