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Student Housing Volume Challenges Last Year’s Record

Student Housing Volume

Digested from National Real Estate Investor

Driven by strong interest in second- and third-tier markets, 2017’s student housing volume could rival 2016’s record breaking year.

If you own or work in a student housing community, odds are that a real-estate investor would like to own it.

“After a slow beginning, 2017 now seems likely to be one of the biggest years ever for sales of student housing properties,” writes National Real Estate Investor’s Bendix Anderson. “It’s unlikely to catch up to the record volumes of 2016, but might beat every other year on record.”

Helping drive that volume was a late September announcement from American Campus Communities (ACC) that it was buying seven student housing properties for $591 million.

Fred Pierce, President and CEO of Pierce Education Properties, an investor, developer and manager of student housing assets, expects student housing deal volume to reach $8 billion or more for 2017. 

As price rise and yields tighten in tier-one metros, investors are seeking student deals in tier-two and tier-three markets. If they can find them, there is plenty of capital available.

“The trend of increasing global equity dedicating funds to the space continues… there is also available, attractive debt,” Dorothy Jackman, Executive Managing Director of the national student housing group at real estate services firm Colliers International tells Anderson.

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