Student Housing Business is the voice of the student housing industry.
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COMPANY PROFILE January/February 2017 StudentHousingBusiness.com 66 A Stable Investment for a Stable Investor Institutional investor TH Real Estate is increasing its acquisitions in the student housing market, further legitimizing the stability of the sector. By Katie Sloan T The past year in student housing has been robust, by any standard. Investor interest continues to increase, as capital streams into the market and a strong pipeline of new development perco- lates across the country. These fundamentals have piqued the interest of institutional investment firms like TIAA Global Asset Management, whose operating division, TH Real Estate, has ramped up its acquisition of purpose-built student hous- ing over the course of the past 18 months. The TH Real Estate division — created two years ago through a joint venture with Henderson Global Investors — was fully acquired by TIAA in 2015, and has been expanding its investment in Europe, Asia and North America ever since. "We've really watched the student housing sec- tor grow over the past two decades, and prior to now, participated on more of a one-off basis," says Mike Schwaab, senior director of TH Real Estate. "Now, we think it's a good time to launch strategies dedicated towards the purpose-built student housing market. We have a number of accounts looking to invest in the space." TH Real Estate currently has an interest in over 6,000-beds of purpose-built student housing, and is looking to expand its portfolio further in the space. This transition from one-off investments to a strategic focus for institutional firms further legitimizes the positive outlook for student hous- ing as a stable investment for years to come. The group is looking for the cream of the student housing crop when it comes to invest- ment — seeking purpose-built communities with bed-to-bath parity, located pedestrian to public universities with Division I athletic teams and enrollment above 15,000 students. While direct investment is the firm's main play in the sector, TH Real Estate also works as a partner in joint venture acquisitions, and on the debt side as a lender. "We plan to do more of our investing on a direct basis," says Schwaab. "We also look at joint ventures with groups that we think are well qualified. We're looking for a track record — somebody who is disciplined in the space with solid experience and good relationships." One such joint venture partner is Pierce TH Real Estate recently acquired 33° North in Denton, Texas, and Greene Crossing in Columbia, South Carolina.