LaSalle Investment Management has acquired Red Cedar Flats, a purpose-built student housing community serving Michigan State University in East Lansing, Michigan. The property totals 190 units and 436 beds and is located within walking distance of the university, positioning it to directly capture demand from the campus population.
The acquisition was completed on behalf of LaSalle Value Partners IX, the firm’s value-add fund, which is making its first investment in the student housing sector through this transaction. LaSalle structured the deal as a joint venture, bringing in King Bridge Partners and Clear Rock Capital as equity partners alongside the fund. The property was completed in 2021, making it a relatively new asset within the local student housing supply.
Red Cedar Flats is described as strategically positioned to serve Michigan State University students due to its proximity to campus and its contemporary vintage. LaSalle’s investment thesis for the acquisition focuses on the appeal of newer, campus-adjacent student housing at large universities. The firm cites conditions such as enrollment growth, limited new development activity and constrained housing options as drivers of demand for assets like Red Cedar Flats.
According to Jeff Shuster, President of LaSalle Value Partners, student housing is viewed as an attractive residential subsector, with particular emphasis on modern properties located near major university campuses. He notes that Red Cedar Flats fits this thesis as a well-located, high-quality community that can benefit from those demand fundamentals.
LaSalle states that the property was acquired below replacement cost and with in-place cash flow, suggesting potential for both income stability and value creation within the fund’s strategy. The firm indicates that the opportunity is expected to generate strong risk-adjusted returns for investors in LaSalle Value Partners IX, aligning with the fund’s broader value-oriented mandate.
Operationally, University Partners has been engaged to provide property management and co-asset management services for Red Cedar Flats. This gives the venture a dedicated student housing operator to oversee day-to-day performance and coordinate with the ownership group. The combination of institutional capital through LaSalle and specialist management through University Partners establishes a framework focused on both asset quality and operational execution.
The transaction underscores continuing institutional interest in student housing linked to major public universities, particularly when assets are newly built, walkable to campus and acquired at pricing levels that compare favorably to replacement cost. With this closing, LaSalle Value Partners IX gains its initial exposure to the sector via a recently delivered property that is closely tied to one of the country’s large university markets.
