Investcorp has recently completed the acquisition of four student housing properties, totaling almost 3,000 beds and with a gross transaction cost exceeding $300 million. These acquisitions include two properties in Texas and one each in Oklahoma and Kentucky.
The first property is located at Texas A&M University in College Station, Texas. It boasts 792 beds with a high occupancy rate of 99%. The second property is situated at Texas State University in San Marcos, Texas and offers 486 beds with an impressive occupancy rate of 98%.
According to Michael O’Brien from Investcorp, many top university markets are facing housing shortages due to growing enrollment rates. This creates favorable operating conditions for the student housing sector which supports their long-term belief in this asset class.
Yardi reports that nationally, the student housing sector has performed well this academic year with strong tenant demand and rent growth averaging nearly five percent across the top 200 university markets – above its long-term average.
With deep experience in this sector already under their belt – having owned and managed approximately twenty thousand beds through around thirty investments – Investcorp continues to expand its presence by acquiring these two additional properties within highly sought-after university locations.
