US: A joint venture consisting of Nuveen and The Preiss Company is selling five student assets across the US Sunbelt, in the largest purpose-built student acommodation (PBSA) deal of the year so far.
The portfolio consists of 3,693 beds across 1,248 units.
According to commercial real estate services company Newmark, which brokered the deal on behalf of the JV, the sale is the largest PBSA deal to take place in the US so far this year.
Neither the identity of the buyer nor the sale price have been revealed at this point.
The properties are spread across four states including North Carolina, Texas, Indiana, and Florida. They are all located within an average of 0.87 miles of major campuses, including the University of Florida, North Carolina State University, Indiana University, The University of Texas at Austin, and Texas State University. All of these schools average student populations of more than 47,000, according to Newmark.
The assets feature amenities such as grilling stations, fitness centres, study rooms, outdoor recreation, and swimming pools.
Ryan Lang, a broker at Newmark, who represented the seller on the deal, said: “This record portfolio transaction reinforces the burgeoning demand for premium student housing assets adjacent to prestigious universities. As enrolment numbers continue to rise and campuses expand, investors are seeking more opportunities in well-located, high-quality student housing, a resilient and attractive asset class.”
A recent report from Yardi Matrix shows that student housing pre-leasing is slowing down. In March, among the 200 universities tracked, the figure was averaged 67.1 per cent, down from 67.7 per cent a year ago. Additionally, rent growth eased to 2.5 per cent, marking the lowest seen since July 2021, according to Yardi.
Newmark said its student housing sales and financing transactions exceeded $1 billion in volume. “This performance highlights the ongoing strength of the student housing sector as investors continue to target fast-growing university submarkets across the US,” the company said.
