Student Housing Business

JAN-FEB 2018

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

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NE WS IN BRIEF January/February 2018 8 GREYSTAR AWARDED MANAGEMENT OF 364-BED COMMUNITY NEAR NORTH DAKOTA STATE UNIVERSITY Fargo, N.D. — Greystar Student Living has been awarded manage- ment of The Bridges Apartments, a 364-bed student housing com- munity located near North Dako- ta State University in Fargo. The property is currently under con- struction, and began pre- leasing in January. The community will offer one-, two-, three- and four- bedroom units with bed-to-bath parity. Shared amenities will in- clude a clubhouse, business cen- ter, private study rooms, a com- puter lab, state-of-the-art fitness center, cyber café, activity room, automated convenience store, out- door kitchen and grilling stations, an outdoor fireplace and a recre- ational area. CBRE ARRANGES SALE OF 816-BED COMMUNITY NEAR JAMES MADISON UNIVERSITY Harrisonburg, Va. — CBRE Nation- al Student Housing has arranged the sale of North 38, an 816-bed student housing community locat- ed near James Madison University in Harrisonburg. The garden-style community consists of 19 three- story residential buildings and a leasing office and clubhouse. Shared amenities include a resort- style pool with a fountain and sun- deck, a gazebo with an outdoor fire pit, a state-of-the-art fitness center and a private shuttle service to the university. Carl Olzawski and Richard Hart of Chain Bridge Capital purchased the asset from JMG Realty for an undisclosed price. CBRE's Jaclyn Fitts, William Vonderfecht, Casey Schaefer and Robert Dean III arranged the trans- action on behalf of JMG Realty. CAMPUS ADVANTAGE SELLS 612-BED COMMUNITY NEAR MARQUETTE UNIVERSITY Milwaukee, Wis. — Campus Ad- vantage has sold The Marq, a 612- bed community located near Mar- quette University in Milwaukee. The property offers studio, one-, two-, three- and four-bedroom ful- ly furnished units. Shared ameni- ties include a renovated clubhouse, 24-hour fitness center, free shuttle to campus, hammock garden, bar- becue grill, fire pits, individual study rooms, a tanning bed and a cyber café. Campus Advantage acquired the property in 2014 and successfully executed a value-add strategy that included addressing deferred maintenance and reno- vating common areas. The com- pany also partnered with Catalyst for a new, integrated marketing approach for leasing. Terms of the disposition and the buyer were undisclosed. "We are pleased to have been able to implement our solid investment strategy to help improve The Marq's living experi- ence, and significantly increase the value of the property and the value delivered to the student commu- nity," says Michael Orsak, senior vice president of investments for Campus Advantage. "The sale of The Marq is reflective of our well- established track record and abil- ity to turn around, stabilize and optimize struggling assets." HARRISON STREET TO ACQUIRE SIX PROPERTIES IN GERMANY Chicago — Harrison Street Real Es- tate Capital has agreed to acquire a portfolio of six student housing properties in Germany from MPC Capital AG. The portfolio consists of more than 1,000 beds and serves university students in Berlin, Bonn, Kaiserslautern, Leipzig and Nuremberg. In addition, Harrison Street has formed a strategic joint venture with MPC Capital to ac- quire student housing properties across Europe. Headquartered in Germany, MPC Capital is a devel- oper and operator of student ac- commodations. Under the terms of the joint venture, the proper- ties will continue to be managed under MPC Capital's STAYTOO brand and existing property man- agement teams. MPC Capital has identified several other proper- ties as possible acquisitions for the joint venture, which will also be managed under the STAYTOO brand. Germany has Europe's largest student population and a supply-constrained student ac- commodation market, according to Robert Mathias, senior manag- ing director and head of interna- tional at Harrison Street. GMH CAPITAL, AGC EQUITY ANNOUNCE STUDENT HOUSING ACQUISITION AND DEVELOPMENT PARTNERSHIP Newtown Square, Pa. — Newtown Square-based GMH Capital Part- ners has entered into an investment agreement with London-based AGC Equity Partners to acquire existing core and value-add student housing, and develop new purpose-built student housing properties across the U.S. "We are excited to be partnering with AGC and for the ability to bring international capital to the student housing sector," says Gary Holloway Jr., president of GMH. "AGC is new to the student housing space and relatively new to domestic investments. They raised funds with their previously established donors, and we will be acting as the operating platform. It is a unique structure and a joint effort." The fund has already broken ground on its first property, a 500- bed community located at California Polytechnic State University in San Luis Obispo. The partnership has two additional developments in California in its pipeline, and is seeking to acquire core and value- add assets over the next 18 months. GMH's student housing division, GMH University Housing, will manage the assets owned with AGC. "We are targeting 70 percent core assets, and the balance is a mix of value-add and new construction," says Holloway Jr. "We're per- fectly comfortable with core returns and cash flow. By augmenting the returns with development and value-add deals, we are aiming to become a core fund while giving our investors the ability to earn higher yields from development and value-add." In 2015, GMH Capital entered into a joint venture agreement with Principal Real Estate Investors, which included acquiring and devel- oping up to $650 million worth of student housing assets across the U.S. The company's recent agreement with AGC Equity forms an ex- clusive investment relationship in the domestic student housing mar- ket, effectively marking an end to its work with Principal. "This picks up where our relationship with Principal left off," says Holloway Jr. "Now, we have the capital that we desire to acquire more product. This partnership gives us the opportunity not to cool off, and to keep the pedal down and keep pursuing core assets." — Katie Sloan North 38 is located near James Madison University in Harrisonburg, Virginia. CBRE recently brokered the sale of the property.

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