State schools

Huge public school student housing portfolio hits the market for $550 million

The Yard in Ann Arbor, one of the portfolio student residences that the joint venture is selling.

On-campus apartments and Clarion Partners have listed five student apartment complexes in four cities and are seeking more than $500 million, the latest in a series of student housing portfolios to hit the market.

The joint venture is hearing bids on a portfolio of 2,643 beds and 811 units across buildings in Ann Arbor, Michigan; Clemson, South Carolina; Knoxville, TN; and Tallahassee, Florida, Green Street Reports.

The joint venture is committed CBRE to market the portfolio, which is valued at around $550 million, or $678,000 per unit, according to Green Street. The properties are located near some of the largest schools in the country – University of Michigan, Clemson University, University of Tennessee and Florida State University.

The portfolio is part of a couple that have hit the market recently, showing the rise in interest in the sector as selling activity wanes in more traditional asset classes.

A joint venture of Ceruzzi properties and Park7 Group markets a portfolio of 11 properties for $1.1 billion, which includes 2,906 units mainly in the Solar beltby Green Street, while based in London GAC Equity Partners and Pennsylvania-based GMH Communities are offering a portfolio of six properties and 724 units for $350 million.

The Campus and Clarion partnership dates back to 2015 when the pair entered into a $402 million US student housing fund which was used to invest in housing and other campus-related real estate, Reported student housing activity.

Campus Apartments has $1.5 billion in assets under management and operates in 18 states, according to the company’s website. The operator has partnered with more than 50 universities, including the University of Pennsylvania, Howard University and Emory University.