(EDITOR’S NOTE: The two student housing assets in Seattle were part of a portfolio deal done by Heitman for the Florida State Board of Administration, Florida’s state pension fund, as a separate account transaction by the manager.)
Austin, Texas, May 29, 2018 – Campus Advantage®, a leader in student housing, providing property management, consulting, acquisitions, and development services, today announced the acquisition of six student housing properties as part of a joint venture with a major state pension fund. The portfolio of properties, located at five universities, adds 1,910 beds to Campus Advantage’s managed student housing property holdings.
The portfolio, located at Auburn University (Evolve Auburn), Illinois State University (The Flats), University of Oregon (Uncommon Eugene), University of Tennessee (Evolve Knoxville), and the University of Washington (Identity, LIV) consists of recently constructed properties by CA Student Living and contains a total of 714 units. The properties are located within walking distance of their respective campuses, offer a variety of unit types ranging from studios to five-bedroom/five-bathroom units, and include best-in-class finishes and amenities that rank at the top of their respective markets.
“These high-quality assets are the perfect addition to our portfolio,” said Josh Greenleaf, Vice President of Investments for Campus Advantage. “We targeted these assets for their strong locations, high quality markets and stable performance, which will complement and diversify our existing portfolio.”
Since 2007, Campus Advantage has acquired more than $1.5B in student housing assets through its partnerships. This acquisition marks the successful investment of a $200 million joint venture with a large state pension fund, the second of its kind between the partners. Campus Advantage previously completed a $150 million joint venture investment with the same partner in 2015, in addition to two other programmatic partnerships with another institutional partner, totaling $175 million from 2007 to 2015. In total, across four joint ventures, Campus Advantage has invested $525 million in equity since 2007. A disciplined investment approach combined with diligent asset management has resulted in performance on the disposition of more than $440M exceeding both NCREIF Property Index (NPI) and PREA | IPD U.S. Property Fund Indexes.
“This acquisition marks the end of a successful investment period on our joint venture, and we look forward to delivering strong returns to our partners,” said Michael Orsak, Executive Vice President of Investment for Campus Advantage. “We also look forward to establishing new relationships and replicating the successful track record we have built over the last 10 years.”
Campus Advantage will soon begin fundraising for a new programmatic joint venture to invest in student housing assets. The venture is expected to be geographically diverse, and pursue multiple strategies, leveraging the company’s fully integrated platform and deep industry knowledge to deliver a strategic exposure to the student housing asset class.
Through programmatic joint ventures and best-in-class management services, Campus Advantage has built its property portfolio of owned and managed properties to more than 34,000 beds, continuing a decade-long record of being ranked within the top ten student housing managers and owners.
“Because of our proven track record of maintaining and operating each of our properties to the highest standard, we are able to create an environment where our residents thrive, resulting in maximum occupancy, rental rate growth and returning resident ratios,” said Mike Peter, President and CEO of Campus Advantage. “Our decades-long commitment to connecting residence life, marketing, and revenue management benefits all associated with these communities.”
Under Campus Advantage management, these newly-acquired properties will benefit from programs that deliver a resident-focused experience that inspires and equips residents for personal and academic success. This includes Campus Advantage’s highly regarded Students First® program, which is designed to ensure that students who choose to live at Campus Advantage communities have more opportunities to achieve success both now and in the future.
About Campus Advantage
Campus Advantage® is a real estate investment management firm fostering financially prosperous higher education student housing communities through its management, development, acquisition, and consulting services. Since its founding in 2003, Campus Advantage has been creating successful communities that provide rewarding living, learning, and career experiences, and as a result has become one of the fastest growing private student housing companies in the nation. The company’s asset acquisition and management strategies combined with its dedication to residence life and student development has made Campus Advantage the 6th largest student housing owner and the 7th largest manager in the United States. Learn more at www.campusadv.com.