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The Kids Are All Right: Student Housing Projects in Seattle, Toledo, and Tucson
September 2018 - Real estate investing platforms typically offer a mix of traditional commercial properties, but RealtyShares offers a handful of niche investment opportunities that can be particularly attractive to our community of investors.
Among these opportunities are designated off-campus student housing projects—multifamily investment opportunities that often feature a stable source of potential tenants, demand that can sometimes increase during economic downturns (when student populations often grow), and an opportunity for diversification.
As a result, we found that student housing projects often fund quickly on the RealtyShares platform, including three recent projects totaling $15.9 million in Seattle, Toledo and Tucson. (article continues below)
The University of Washington
First, RealtyShares closed on a 10-property portfolio in Seattle near the University of Washington.
The Seattle Student Housing project, which closed for a total of $11.9 million, was innovatively structured to include capital sourced from RealtyShares’ institutional network as well as a $1 million second-lien loan funded through the RealtyShares’ platform.
All 10 properties in the portfolio were situated less than 1.5 miles from the University of Washington—a campus of approximately 54,000 students located within one of the highest price growth housing markets in the United States according to the Case-Shiller national home price report. (article continues below)
The University of Toledo
Second, RealtyShares funded a $2 million common equity investment in a student housing complex located directly across from the University of Toledo in Ohio.
The university, which according to CBRE (a prominent real estate services firm), enrolls approximately 20,000 students, has on-campus housing that is able to accommodate only a portion of that population—leaving off-campus housing options in high demand.
Investors on the RealtyShares platform were quickly drawn to the unique project, which comprised a top-of-the-line 590-room student housing complex with high-end finishes and excellent amenities including a fitness center and resort-style pool.
The University of Tucson
Finally, RealtyShares closed on a $2.9 million common equity investment for College Town Tucson: an 88-unit, 247-bed student housing complex located just 6 blocks from the University of Arizona.
According to REIS (a prominent data provider), the University of Arizona—which has an enrollment of over 43,000 students—has on-campus housing capacity for only 7,254 students, meaning that more than 35,000 of its students live off-campus.
In addition to the project's strong demographics, College Town Tucson also featured an experienced sponsor, attractive amenities and an innovative renovation plan.
A Potentially Attractive Opportunity
With new students arriving each year, student housing projects can represent excellent investment opportunities, with a potentially large and steady pool of tenants in top locations across the U.S. According to National Real Estate Investor, many university areas have become particularly appealing for these types of projects.
As a result, unique student housing projects continue to emerge on the RealtyShares platform and may remain popular and attractive opportunities for RealtyShares investors.
Interested in raising capital for your next project? Drop us a line at bizdev@realtyshares.com.
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