The University Center in downtown Chicago, one of the largest student housing buildings in the United States, is up for sale.
Called the Superdorm, the 1,729-bed, 18-story building houses students from Columbia College Chicago, DePaul University and Roosevelt University. Each institution commits to filling a certain number of beds each year, with Columbia committing to 686, DePaul to 343 and Roosevelt to 299 this year.
Enrollment at each of the institutions is decreasing, which caused the credit-ratings agency Fitch to downgrade the buildings $127 million in bonds to a BBB+ rating with a negative outlook. However, as part of the sale, the three schools are willing to sign a long-term master lease, guaranteeing payment for a certain number of beds into the future.
Built 12 years ago for $150 million, University Center is likely to sell for more than that today. Dwight Lofts, a 771-bed student housing community downtown, recently sold for $105 million.
Check out the Superdorm at the Student Housing Conference & Exposition from Feb. 14-15 in Chicago. Registration is open now.