Student Housing Business

SEP-OCT 2018

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

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51 September/October 2018 ers whose deals are trading," says Travis Prince, executive managing director of student housing capital markets at Cushman & Wakefield. "We set expectations from the beginning during the BOV (bro- ker's opinion of value) process. We outline all of the variables that drive pricing for an asset and have candid conversations about what headwinds we may encoun- ter, as well as how to best position the asset for success." International capital has slowed its buying activity in the sector, but still remains a key player. In 2017, 40 percent of all trans- actions were purchased by inter- national capital, according to CBRE. Through mid-year 2018, 26 percent of all transactions were acquired by international capital. But despite the slow down, for- eign and institutional capital con- tinue to display a steady desire to have student housing as part of their overall real estate invest- ment holdings. "We continue to see new capi- tal earmarking allocations to U.S. student housing and believe this trend will continue through 2019- 2020," says Bradley. "While several of the overseas funds have slowed their acquisi- tion pace in the U.S., that gap is being filled by all the new entrants moving into student housing," says Baird. "Family offices and institutions are still driving the top pricing, but private capital buyers are very active in the sub- $20 million market. "International capital is still a big topic in the industry," says Prince. "Our Global Capital Group was recently in China and U.S. student housing came up in a majority of the meetings. China has been out of the market for the past two years but is selectively re-entering niche investment mar- kets, like student housing." Lang says he has seen some investor groups look off the radar at projects that are a mile or further away from campus to achieve bet- ter yields with value-add projects. Fitts has also seen investor groups seek out oversupplied markets and those with enrollment dips in hopes that their longshot pays off when the market recovers. Col- lege Station, Texas, is one market where oversupply has been an issue, but long-term investors see Real estate is a powerful asset. It helps define the business of a company. The spirit of a startup. The values of an investor. Our Student Housing Team is supported by a global platform of 48,000 employees in over 70 countries. Across industries. Within budgets. And without fail. Our experts are here to put your real estate ideas into action. What can we do for you? multifamily.cushwake.com/Specialties/StudentHousing VICTORIA MARKS Senior Financial Analyst Direct: +1 813 424 3215 victoria.marks@cushwake.com TRAVIS PRINCE Executive Managing Director Direct: +1 813 204 5315 travis.prince@cushwake.com Crowne at Long Leaf Univ. of Southern Mississippi ON MARKET Eagle Flatts Univ. of Southern Mississippi ON MARKET University Lofts University of West Georgia ON MARKET WE BELIEVE THE CLIENT GIVES EVERY INVESTMENT PURPOSE. EVERY PROPERTY A SOUL. EVERY TRANSACTION A PULSE. STUDENT HOUSING CAPITAL MARKETS Connection at Lawrence University of Kansas ON MARKET Southeast Student Portfolio Univ. Mkts in Florida & Mississippi ON MARKET Connection at Athens University of Georgia SOLD

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