Baltimore, MD– A joint venture owned by Alex. Brown Realty (ABR) and the Asset Plus Companies has acquired Crossing Place Apartments, a student housing community in College Station, Texas. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $3.3 million in the venture.
Crossing Place is located 1.25 miles southeast of Texas A&M University’s west campus and is along the university’s shuttle line. Texas A&M University, the 10th largest university in the nation, currently enrolls 50,000 students but only has the capacity to accommodate 9,800 students in university-owned housing.
The property was developed in 2002 and its eight buildings contain 96 fully-furnished, four bedroom/two bathroom apartment units. All leases at the property are contracted by-the-bed, meaning that the property has the potential for 384 individual leases. The property is currently 100% pre-leased for the 2012/2013 school year.
Asset Plus has managed the property since 2004 and the joint venture capitalized on Asset Plus’ existing relationship with the seller to acquire the property via an off-market transaction at an attractive basis. “Our basis uniquely positions Crossing Place as the low-cost provider in the College Station market,” noted Michael McGrath, chairman and president of Asset Plus. “Consequently, we can achieve our targeted returns yet charge rents at a rate substantially below our competitors.”
The joint venture plans to invest $400,000 of capital to update select apartment units, repaint the property’s exterior, and renovate the interior of the clubhouse. The targeted improvements should allow the property to achieve rent premiums of approximately $20 per bed, per month.
Crossing Place is the second joint venture between ABR and Asset Plus. Asset Plus also provides property management services for four other properties owned by ABR investment programs. “Asset Plus is an experienced and successful operator and we look forward to leveraging their expertise once again to generate strong returns for our investors,” stated Tom Burton, CIO of ABR.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Asset Plus Companies (APC) is a Houston-based real estate management firm specializing in maximizing value for owners, developers and investors of conventional, student, affordable, tax credit, military and senior housing nationwide. APC was founded in 1986. www.assetpluscorp.com