Student Housing Business

MAY-JUN 2018

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

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NE WS IN BRIEF May/June 2018 StudentHousingBusiness.com 20 ASSET CAMPUS HOUSING AWARDED MANAGEMENT OF 850-BED COMMUNITY IN PHILADELPHIA Philadelphia — Asset Campus Housing has been awarded man- agement of evo Philly at Cira Centre South, an 850-bed student housing community located in University City, Philadelphia. The property offers easy access to several schools, including the University of Pennsylvania and Drexel University. The property offers one, two-, three- and four- bedroom units. Shared amenities include a rooftop infinity pool, 11 two-story study lounges, a two- story fitness center, free weekly fitness studio classes, a rooftop lounge and a business and print- ing center. EIGHT PROPERTY, 1,546- BED STUDENT HOUSING PORTFOLIO TRADES HANDS NEAR BRIGHAM YOUNG UNIVERSITY-IDAHO Rexburg, Idaho — Marcus & Milli- chap has arranged the sale of an eight-property, 1,546-bed student housing portfolio located near Brigham Young University-Idaho in Rexburg. Each of the properties is located one or two blocks away from the university's campus. Ac- quired properties include Somer- set offering 288 beds; Alpine Cha- let, offering 252 beds; Brookside Village, offering 146 beds; Rock- land, offering 238 beds; Autumn Winds, offering 120 beds; George- town, offering 72 beds; Birch- wood, offering 24 beds; and Birch Plaza, offering 406 beds. Danny Shin and Brock Zylstra of Marcus & Millichap represented the seller, a Seattle-based firm, and procured the buyer, a company based in Utah, in the transaction. Terms of the sale were undisclosed. CBRE ARRANGES SALE OF 590-BED COMMUNITY NEAR THE UNIVERSITY OF TOLEDO Toledo, Ohio — CBRE has ar- ranged the sale of Edge 1120, a 590-bed student housing commu- nity located near the University of Toledo. Jaclyn Fitts, William Vonderfecht, Casey Schaefer and Dave Lockard of CBRE arranged the transaction on behalf of the seller, a joint venture between Diamond Realty Investments and the NRP Group. William Fideli Investments acquired the prop- erty for an undisclosed price. The community offers shared ameni- ties including a resort-style swim- ming pool with lounge seating, a covered pavilion with an outdoor grill area, a gas fire pit and a sand volleyball court. MARCUS & MILLICHAP ARRANGES SALE OF 324- BED COMMUNITY NEAR THE UNIVERSITY OF TEXAS AT TYLER Tyler, Texas — Marcus & Millic- hap has arranged the sale of The Reserve, a 324-bed student hous- ing community located near the University of Texas at Tyler. Evan Burke, Nick Fluellen and Bard Hoover of Marcus & Millichap represented the seller, an out of state private investor, in the trans- action. A well-known higher edu- cation system in Texas acquired the asset. The Marcus & Millichap team helped navigate through the unique requirements the school had in order to utilize the proper- ty for student housing, and were active in the negotiation between the buyer and the seller. Addition- al information on the transaction and the community was undis- closed. COLLIERS TO ACQUIRE 75 PERCENT STAKE IN HARRISON STREET FOR $450 MILLION Toronto and Chicago — In an effort to expand its global investment management platform, Colliers International Group Inc. (NASDAQ: CIGI) has agreed to acquire 75 percent of Harrison Street Real Estate Capital LLC for $450 million. Under the terms of the transaction, which is expected to close dur- ing the third quarter, the senior management team of Harrison Street will hold the remaining 25 percent of equity. An additional $100 mil- lion will be payable to Harrison Street in 2022 based on the achieve- ment certain performance targets. Chicago-based Harrison Street currently manages about $14.6 bil- lion worth of assets, primarily in the seniors housing, student hous- ing, medical office and self-storage sectors. The company's senior management team will continue to handle its day-to-day operations. No changes to the company name have been announced at this time. According to CEO Christopher Merrill, Harrison Street was seek- ing an outside investment partner to assist with its global positioning strategy. Harrison Street was drawn to the depth of Colliers' relation- ships on a global scale, as well as the brokerage firm's decentralized management style and track record in investment sales. For its part, Toronto-based Colliers was in the market for a new platform that would enable global investment growth. The company expects annual management fee revenue to be between $100 million and $115 million. "We were particularly attracted to Harrison Street's focus on attrac- tive real estate asset class strategies and its massive segments offer- ing significant, demographically driven growth opportunities with defensive-cycle characteristics," says John Friedrichsen, CFO of Col- liers. "The recurring management fees offer Colliers another stable and recurring source of revenue." Berkshire Capital acted as financial advisor and DLA Piper acted as legal advisor to Harrison Street. Sidley Austin acted as legal advisor to Colliers. The stock price of Colliers opened at $70.90 per share on Monday, May 14, up from $51.80 per share a year ago. The company's stock price rose to $75.25 per share in the opening hours of trading follow- ing the announcement of the deal with Harrison Street. — Taylor Williams

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