Campus Realty Advisors and T2 Capital Management have acquired a portfolio of four student housing communities. No financial terms were disclosed. Realiance International Real Estate Partners is also participating in the transaction. The properties in the four university markers include Central Washington University, Stephen F. Austin University, Austin Peay State University and Georgia Southern University. Asset Campus Housing will provide property management services.
ATLANTA, Jan. 11, 2019 /PRNewswire/ — A joint venture led by Campus Realty Advisors and T2 Capital Management has purchased a portfolio of four student housing communities totalling 2,282 beds. The properties are in four university markets across the U.S. including Central Washington University, Stephen F. Austin University, Austin Peay State University and Georgia Southern University. The purchase expands Campus Realty’s student housing operations into a national footprint. The joint venture will immediately invest significant additional capital into these six- to eleven-year-old properties including improvements to unit interiors and amenities to boost their appeal and cash flow.
Joining the investment with Atlanta-based Campus Realty and privately held T2 out of Wheaton, IL, is Realiance International Real Estate Partners, a Dutch investment group based in Amsterdam. Campus Realty will provide asset management services and oversee the major renovations of the properties. The joint venture has engaged Asset Campus Housing to provide property management services.
Jeff Brown of T2 noted that “This opportunity fits squarely in our value-add strategy. We’re pleased to be able to expand our programmatic venture with Campus Realty with these strategically positioned assets.” The group plans to upgrade the unit interiors, amenity areas and clubhouses with a focus on catering to the needs of today’s students. According to Brown, “Our plan is to implement the capital and operating strategy for these properties quickly and efficiently. We will then judge our success based on the positive experiences of our residents.” Randy Herron, a Principal with Campus Realty, added “We search out and purchase underperforming assets, and reposition them with market-competitive improvements while maintaining value rents. We look forward to rebranding these properties while providing top-quality service to create a great living experience for students and value for our partners.”
T2 Capital Management focuses on providing capital to transitional and opportunistic middle-market commercial real estate assets throughout the United States. They provide capital structured as joint venture equity, bridge loans, mezzanine loans, and preferred equity. As a contrarian investor, T2 primarily focuses on property types that appear to be undervalued or poised for recovery.
Campus Realty Advisors is a boutique investment and development company focused on creating value in off-campus student housing. Campus Realty identifies college markets and properties that offer significant profit potential for its partners and then executes strategic market specific plans to capitalize on the opportunities.