Student Housing Business

JUL-AUG 2018

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

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PORTFOLIO STRATEGIES July/August 2018 StudentHousingBusiness.com 68 hybrid type investor." How these buyers find and partner with student housing companies seems to vary deal by deal. Some are completed off- market, while others are backed by higher-profile marketing and brokerage support. Working within a smaller, more intimate area of commercial real estate, student housing owner/ operators tend to know each other well. Some portfolio transactions have been completed privately between colleagues without the cost and fanfare of marketing. "We have seen in off-market transactions we've represented that if investors feel they're get- ting special treatment and know they have a higher likelihood of getting to the closing table due to the perceived limited competition, they can be willing to stretch on pricing," says Jaclyn Fitts, director of national student housing for CBRE. "The pros of an off-market transaction for the seller include saving the time associated with a full marketing process. One of the cons is you could potentially be leaving money on the table because you close off the opportu- nity from new investors to look at the portfolio." For example, CBRE brokered the "power conference portfolio" in December 2017. Sold by M&A Real Estate Partners, it was a four-property, 1,720-bed portfolio including properties at Tallahas- see, Florida; Auburn, Alabama; and two in Madison, Wisconsin. The buyer was Centurion U.S. Stu- dent Housing Fund, a fund man- aged by Singapore-based Centu- rion Corporation. In November 2017, Centurion announced it had raised $89.5 million for the fund, which marked Centurion's entrance to U.S. student housing. "If that transaction had gone unmarketed, obviously we wouldn't have taken an asset or a portfolio to them directly," says Fitts. "You can miss the aggressive investors coming into the space if you go unmarketed." Portfolios were so popular last year that the number of core prop- erties traded individually was low. Fitts says of the 258 assets that traded in 2017, only 19 were new construction properties that transacted on a one-off basis, and only five of those were larger than 325 beds. "When you see one-off core property transactions decrease, TEXAS TWO PACK PORTFOLIO EAST TO WEST QUARTET PORTFOLIO THE CORE COLLECTIVE PORTFOLIO THE RIDGE PORTFOLIO STUDENT HOUSING COUNTRY WIDE PORTFOLIO $2.2 BILLION & 43 ASSETS C LO S E D, C O N T R ACT E D, O R F I N AN C E D BY O U R T E AM I N T H E PAS T 1 2 M O N T H S C O N T A C T U S F O R M O R E I N F O R M A T I O N ARA's student housing team has a proven track record in providing best-in-class investment sales services for clients across the nation. With the NKF Capital Markets group in-house, we offer investment sales along with debt and equity placement services, giving investors one trusted name for the entirety of the transaction. Together, we have closed over $7.5 billion in student transactions and have significant experience in successfully executing portfolio, pre-sale, value-add, core, and secondary markets transactions. WE ARE THE INDUSTRY'S BEST IN EXECUTION. ARA STUDENT HOUSING NKF CAPITAL MARKETS Ryan Lang 512-637-1296 rlang@aranewmark.com Brandon Buell 713-300-7956 bbuell@aranewmark.com Jack Brett 512-637-1218 jbrett@aranewmark.com Trent Houchin 512-637-1298 trent.houchin@ngkf.com Matt Greer 512-637-1236 mgreer@ngkf.com JACLYN FITTS Director of National Student Housing CBRE

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