Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/783396
WHAT'S ON MY MIND January/February 2017 StudentHousingBusiness.com 78 Top 25 Owners 2010 2016 Type of Company # Firms # of Beds % of Beds # Firms # of Beds % of Beds Private SH Operators 13 123,079 44.5% 13 213,525 44.2% REITs 3 103,011 37.3% 2 140,706 29.2% Developers 6 36,261 13.1% 7 65,182 13.5% Private Equity Firm (Direct) 0 - 0.0% 1 46,057 9.5% MFR Investment Manager 3 14,061 5.1% 2 17,214 3.6% TOTALS 25 276,412 100.0% 25 482,684 100.0% Owner Profile: Top 25 Student Housing Owners ment allocations from pension funds and other domestic and international institutional inves- tors, where allocations to niche real estate asset classes are grow- ing, but currently only scratching the surface of total potential. Many larger institutional inves- tors are only interested in invest- ing in niche sectors of commer- cial real estate — such as student housing, seniors housing, health- care real estate, self storage, etc. — if they can place meaningful allocations (hundreds of millions) of equity capital in the sector through qualified operators with institutional resumes and demon- strated investment performance. Generally, this is through joint ventures/separate accounts with private operators, or co- mingled funds through private equity firms. An indicator of the grow- ing interest in the space comes from the Pension Real Estate Association's (PREA) annual Investment Intentions Survey where "Other" real estate sectors (includ- ing student housing) garnered 14 percent to 18 percent of expected equity investment allocations in 2015, causing PREA to single out student housing and healthcare as independent sectors beginning in 2016. As its own category, more than 40 percent of domestic insti- tutional investors reported an intent to invest in student hous- ing in 2017. 5 It should be no sur- prise that student housing invest- ment sales reached all-time highs in 2015 ($6 billion) and 2016 ($9 billion-plus). Consolidation of ownership is good for the industry, allow- ing a core group of stronger and growing companies to continue to enhance the profile, performance and attractiveness of our niche sector of commercial real estate. Continued consolidation should be fueled by the continued flow of institutional equity capital into the sector looking for long-term investment in our industry. Frederick Pierce IV is president and CEO of San Diego-based Pierce Education Properties. Rank Company Net Bed Growth Primary Reasons for Growth 1 Harrison Street 46,057 Campus Crest Acquisition, Core Fund 2 American Campus Communities 44,052 Portfolio Acquisitions & Development 3 The Scion Group 33,677 Acquisitions (inc. University House) 4 Campus Advantage 18,035 Acquisitions 5 Aspen Heights 16,044 Development 6 Vesper Holdings 15,563 Acquisitions (inc CA/Heitman/CALSTRS) 7 The Preiss Company 9,864 Acquisitions 8 Campus Evolution Villages 9,400 Acquisitions 9 FPA Multi-Family 8,811 Acquisitions 10 Columbus Pacific Properties 8,776 Acquisitions 11 Pierce Education Properties 8,509 Acquisitions 12 Coastal Ridge RE Partners 4 8,403 Acquisitions 13 University Communities 7,500 Acquisitions 14 CA Student Living 3 7,487 Development 15 EdR 7,223 Development & Acquisitions Fastest Growing Student Housing Owners, Ranked by Net Bed Increase, 2010-2016 Rank Company 2010 2016 Growth Rate 1 Campus Advantage 2,766 20,801 652% 2 The Scion Group 6,800 40,477 495% 3 Pierce Education Properties 4,308 12,817 198% 4 The Preiss Company 7,000 16,864 141% 5 Campus Acquisitions 3 6,664 14,151 112% 6 Horizon Realty Advisors 6,970 13,680 96% 7 American Campus Communities 62,031 106,083 71% 8 Landmark Properties 4,590 7,684 67% 9 EdR 27,400 34,623 26% 10 Campus Apartments 11,645 13,259 14% Ranked by Percentage Growth 2 Among 2010 Top 25 Owners 1 The AXIO 175 data reflects the 175 national student housing markets surveyed by AXIOMETRICS. 2 Percentage increase in beds owned amongst those companies listed in SHB's Top 25 Survey in 2010 and still active today. 3 CA Student Living, the student housing subsidiary of CA Ventures, was known as Campus Acquisitions in 2010; the company began operating as CA Ventures/CA Student Living in 2012. 4 Formerly known as Peak Property Group 5 PREA Investment Intentions Survey 2017, page 20, figure 4.4.