Baltimore, MD – Alex. Brown Realty (ABR) and Asset Campus Housing announce the acquisition of a student housing project near the main campus of Texas State University in San Marcos, Texas. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $4.6 million in the joint venture. The acquisition was financed with a first mortgage loan from Amegy Bank.
Currently known as University Springs, the 488-bed student housing property will be rebranded as The Reserve at West Avenue and will undergo extensive capital improvements focused on strategic interior and exterior upgrades in order to refresh the property and correct deferred maintenance. At closing, the property was 98% pre-leased for the upcoming 2015-2016 academic school year.
Texas State University is one of the fastest growing universities in the state of Texas, with enrollment increasing for the past 16 consecutive academic school years. The property should benefit from the university’s strong enrollment and close proximity to the main campus. “We were able to acquire the property at a compelling basis,” commented Tom Burton, CIO of ABR. “With the value-add improvements and close proximity to campus, we anticipate positive results for our investors,” added Burton.
Built in 1998, the property’s 152 units range from two, three, and four-bedroom units, and offer student residents an array of amenities. “Once the capital improvements have been completed, we plan to restructure the lease rates and expense payments beginning in the 2016-2017 school year to bring the property in-line with the market,” said Stephen Mitchell, EVP with Asset Campus Housing. Asset is a repeat partner and property manager with ABR and will serve as property manager of the asset.
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 Campus Housing (ACH) – Headquartered in Houston, Texas, Asset Campus Housing, Inc. (“ACH”) is an affiliate of Houston-based Asset Plus Companies, a third party property management firm specializing in real estate services for investors, developers, and owners. Asset Campus Housing manages a student housing portfolio of more than 135 properties, exceeding 80,000 beds located throughout the United States. www.assetcampus.com