Fayetteville Student Housing Complex Sold For $49 Million

A high-profile student housing development near the University of Arkansas campus in Fayetteville has sold for $49 million.

GMH Capital Partners of Newtown Square, Pennsylvania, bought the upscale Sterling Frisco development, a $28.5 million project situated just off the UA campus at the corner of Maple Avenue and West Street.

The price equated to $223,744 per unit (219) and $76,562 per bedroom (640).

GMH made the purchase in the name of College Park Frisco Holdings LLC.

It was owned previously through a partnership of Sterling University Housing of Houston, Texas, a subsidiary of The Dinerstein Cos., and Fayetteville-based Specialized Real Estate Group, led by president Seth Mims and CEO Jeremy Hudson.

“It’s at a beautiful location in the city, and it’s a purpose-built student housing development,” Mims told the Northwest Arkansas Business Journal.

Mims was unsure of the current occupancy rate of Sterling Frisco but anticipated the development being fully leased when the fall 2015 semester begins.

Sterling Frisco, a five-story development on three acres, was built by Richmond Builders Inc. of Houston, Texas, and opened in 2013. Apartments are leased by the bedroom. The lowest rental rate at the complex, according to the Sterling Frisco website, is $599 per month for a room in a four-bedroom apartment. The most expensive lease is $900 per month for a studio apartment.

Almost like a dorm setting, Sterling Frisco comes complete with a resort style saltwater pool, rooftop sun terrace, fitness center and free tanning center. There is also an on-site coffee shop and market.

Living areas have Energy Star appliances and flat-screen televisions in each bedroom.

The property, contiguous to the Razorback Regional Greenway trail system, was designed by Fayetteville architecture firm Modus Studio, and is LEED Gold certified.

Ryan Reid with CB Richard Ellis’ national student housing group in Dallas was the listing agent.

A phone call to GMH headquarters on Monday was not immediately returned.

Other SREG Projects

SREG has developed several downtown Fayetteville multifamily projects. Most notable are the Cardinal at West Center, also an off-campus student housing complex with 471 beds, and Eco Modern Flats, a refurbished 96-unit apartment property that was the first multifamily development in the state to attain any level of LEED certification.

Last fall, SREG announced intentions to develop a mixed-use apartment and retail complex at the southwest corner of Joyce and Steele boulevards, across from Razorback Cinema and Academy Sports.

Modus Studio is also the designer of this yet-to-be named development, touted as a pedestrian-friendly, trailside apartment community. The project will have around 300 apartments ranging from one to three bedrooms and around 12,000 square feet of commercial space.

Mims said construction on that project, led by Golden Construction of Birmingham, Alabama, should start by mid-summer at the latest

SREG and Dallas-based Fountain Residential Partners are also in the midst of developing Beechwood Village, a student housing community just south of MLK Boulevard on Beechwood Avenue.

Originally introduced with the name Idyll Village, the 1,100-bed development will feature 108 modern-style homes with varying layouts of one-, two- and three-story cottages.

The first phase will include 670 beds. Mims said construction on the project is “going along swimmingly” and should be delivered by August.

GMH Growth

GMH Capital Partners, operating under its parent company GMH Associates Inc., is a leader in the acquisition, development and management of residential and commercial properties throughout the United States.

On Jan. 15, the company announced it was entering into a strategic joint venture with Principal Real Estate Investors — part of Principal Financial Group of Des Moines, Iowa — to “pursue student housing opportunities” in multiple markets throughout the United States, targeting up to $650 million worth of properties in the next 12 to 18 months.

Before it was sold in 2008, GMH’s College Park Communities division was one of the nation’s largest housing companies, supplying nearly 70,000 beds on campuses in 29 states.

In a company news release, GMH president Gary Holloway said the company had been closely monitoring the student housing industry over the past several years and felt that the current landscape was ideal for an entry back into the market.

UPDATE:

GMH provided an official announcement Tuesday morning.