Student Housing Business

JUL-AUG 2018

Student Housing Business is the voice of the student housing industry.

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Cushman & Wakefield's Student Housing team specializes in purpose-built student housing and student-competitive assets in university markets across the country. Providing the complete spectrum of asset quality, vintage and deal size. Serving both private clients and institutional investors alike. We offer specific sector expertise, with unparalleled reach and access to capital. What can our team do for you? S T U D E N T H O U S I N G E X P E R T I S E FOR OUR CLIENTS WE DELIVER UNPARALLELED RESULTS AND VALUE VICTORIA MARKS Senior Financial Analyst Direct: +1 813 424 3215 TRAVIS PRINCE Executive Managing Director Direct: +1 813 204 5315 Student Housing Capital Markets Old Row at Tuscaloosa University of Alabama SOLD Connection at Athens University of Georgia SOLD Student Quarters U-Lofts University of West Georgia ON MARKET Eagle Flatts University of Southern Mississippi ON MARKET Crowne at Long Leaf University of Southern Mississippi ON MARKET Main 608 Austin Peay State University ON MARKET CRE_StudentMkts Specialties/StudentHousing ing another portfolio in the next few months, but we might be see- ing some activity in the not-so- distant future. "I can see us chasing a portfolio in fall of 2019," Orsak says. "We are currently on a capital raise to find another large pension plan partner. We are in the market to raise $200 million in equity to go out and acquire roughly $500 mil- lion in assets." Makeup And Marketing Portfolios come in many con- figurations and can be consid- ered 'large' by total value or by sheer number of properties. While ACC's sale to Greystar would be considered small at just three properties, the cost set it apart. "$245 million would certainly be considered by most people to be a large portfolio," Talbot says. "Three or four years ago, that level of portfolio sale was virtu- ally unheard of except for a select few transactions." FourPoint Student Housing Investments defines a portfolio as more than three properties and an aggregate value of $100 million or greater. "You're really seeing an overall expansion in portfolio sales in the past couple of years," Talbot says. "And that is driven expressly by the entrance of these large global institutional investors to the sec- tor who want to get out large sums of equity in transactions." "For large, sovereign wealth investment vehicles to get excit- ed about doing anything, it's got to be on a large scale," adds Principal and Co-Founder of FourPoint Investments Chris Epp. "There are not a ton of indi- vidual property sales in student housing that are more than $100 million, so the trend for buyers is to attempt to cobble together a large portfolio." The investor profile is changing. Jackman says most portfolio sales in the past were being done by the largest private and institutional investors. "But now we see small- er private groups also pursuing larger portfolio sales with insti- tutional cross-border investors," she says. "We've also seen groups migrate into the student housing industry from their previous core asset class investments, creating a PORTFOLIO STRATEGIES July/August 2018 67

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