For developers and property managers, the phrase “back to school” means a deadline to put the finishing touches on a new property and an opportunity to start the school year with fully leased properties. Here’s what we’re seeing as students head back to campus this fall.
Student housing is beginning to be seen as a mainstream property type and a solid investment for REITs, but not enough properties are stabilized and on the market from the latest wave of development, according to National Real Estate Investor. REITs are raising capital to invest in student housing, and they should begin acquiring properties over the next few years, says JLL Capital Markets. Some owners, like American Campus Communities and Education Realty Trust, are continuing to develop and plan to acquire new buildings later.
Harrison Street Real Estate Capital recently acquired the 771- bed Dwight Lofts dormitory in the South Loop for $105 million, according to Crain’s. The building at 642 S. Clark St. is entirely leased to Columbia College Chicago through 2026. This is the third purchase of a major student housing building in the city this year. Student housing in Chicago remains a renters market, even though rents in the city’s downtown are rising.
Landmark Properties and Sangita are contributing to the redevelopment of downtown St. Louis with the opening of their new high-end student apartment building, The Standard. The 465-room tower is more than 99% leased, with amenities like granite countertops, stainless steel appliances, a fitness center, a club room and a coffee bar. The building is geared towards St. Louis University students, who will pay $800 to $1100 per room to live in units with one to five bedrooms.
Glassboro, New Jersey
Rowan University students will have another option for housing this fall as the new 316,000 SF mixed-use building at 220 Rowan Blvd opened its doors recently, according to philly.com. The building, developed by Nexus Properties, contains 60 market-rate apartments and will also house 450 students. The $74 million structure includes 20,000 SF of retail and 27,000 SF of medical space.
Students at Auburn University may have a new place to live soon, as CA Student Living announced plans to develop a 126- unit, 456-bed mixed-use building called the Jackson near campus. Student Housing Business reports that the development will replace the Center Court Apartments, which will be demolished, and will include a pool, bike parking and parking garage.