JV Completes Largest Student Housing Market SalePosted by: jhon | Posted on: August 15, 2020
STATESBORO, GA – Student housing real estate investment and property management firm, XFD Real Estate Partners has purchased the largest off-campus student housing community in Statesboro, GA. The acquisition additionally represents the largest student housing sale in the market to date.
For the acquisition, XFD Real Estate Partners entered a joint-venture partnership with Ash Real Estate, Saxum Real Estate and Anchor Real Estate Capital.
Located 1.5 miles from Georgia Southern University at 17358 GA-67 S., the acquired 1,087-bed property, Cottage Row offers a variety of 10 townhome-style floorplans, ranging from two- to five-bedroom layouts. The apartment units feature guest bathrooms and walk-in closets, and are available as furnished or unfurnished options.
The pet-friendly complex features communal amenities including a 24-hour fitness center, two resort-style swimming pools, two volleyball courts, a movie theater, a study lounge and a private shuttle to campus.
During both of the 2019-2020 and 2020-2021 academic years, Cottage Row led the student housing market in pre-lease velocity. The community is currently 100% leased for the upcoming school year.
“The story of the Statesboro market reinforces our belief in the resilience of the student housing sector,” states XFD Real Estate Partners’ principal and COO, Samuel Mtunga. “Five years ago, Statesboro was considered one of the most overdeveloped markets in the country with declining rates and occupancy while enrollment remained relatively flat. Since then, the market has seen a migration of students out of the shadow market and into the purpose-built product which has led to the market leasing up at a record pace, setting the stage for future rent growth. This market is quite the case study.”
Mtunga adds, “Cottage Row offers us a value creation opportunity that is backed by a solid rent roll and reputation. We are excited to showcase how far this asset can go with our management expertise and the deployment of $2 million in capital improvements.”
“This is the first in a series of acquisitions we are pursuing,” says Gregory Bronson, principal at Ash Real Estate. “We have assembled a world class group and we are focused on identifying unique opportunities to put our capital to work. We are disciplined in our approach and our ability to execute in today’s environment is an important differentiator as we move forward.”