A recent sale of student housing broke the record for the largest single sale ever in that real estate segment.
Rockpoint Group and Greystar sold University View, a 1,573-bed student housing high-rise near the University of Maryland in College Park, Maryland for $235 million to an undisclosed buyer, according to CBRE National Student Housing and CBRE Washington D.C. Multifamily, which represented the sellers in the transaction.
According to CBRE, the sale is the highest dollar transaction for a single student housing asset in history.
University View is actually two high rises with 1,573 combined beds and 9,218 square feet of ground floor retail space. The buildings proximity to the college make it an appealing asset, CBRE’s team said.
“University View boasts eight consecutive academic years of occupancy above 99% and has had major common area capital improvements, including the renovation of 33% of the units. The high occupancy rate demonstrated to potential buyers that University View is a top housing choice among University of Maryland students,” said Jaclyn Fitts, Director of Student Housing for CBRE. “Additionally, the asset provides the opportunity for the buyer to drive net rental income by renovating the remaining 67% of beds.”
CBRE Associate Director of Student Housing William Vonderfecht added: “The demand for strategically-located student housing investments at flagship universities across the United States by domestic and international institutions continues to expand. This trophy asset received incredible investor interest globally, driving pricing to record-breaking levels.”