A real estate investment trust (REIT) managed by California-based SmartStop Asset Management announced Wednesday (June 28) the purchase of The District, a 198-unit, 592-bed student housing property near the University of Arkansas in Fayetteville.
The purchase price was $57 million, which equals $287,878 per unit. Sterling University Housing of Houston, Texas was the previous owner.
Formerly known as Sterling District before the acquisition, the 2.3-acre property at 376 W. Watson St. was built in 2016, one block north of the Dickson Street entertainment district. It includes one-, two-, three- and four-bedroom, fully furnished floor plans. The District is currently 95% pre-leased for the 2017-2018 academic year, according to SmartStop.
“The District represents a best-in-class, off-campus, purpose-built and pedestrian-to-campus student housing community at the University of Arkansas,” H. Michael Schwartz, founder and CEO of SmartStop, said in a statement. “The District is an amenities-rich and modern urban wrap-design property that is consistent with our acquisition strategy of acquiring stabilized and purpose-built student housing assets adjacent to Tier 1 universities.”
The property includes gated access, pass-key systems, on-site management with regular security patrols and an on-site, six-story controlled access parking garage.
Texas-based Asset Campus Housing, which manages more than 210 properties in its portfolio, will provide on-site management.
Each apartment unit is fully furnished with state-of-the-art amenities and energy efficient appliance packages. Community amenities include a computer lab and business center, study rooms, an expansive pool, spa and courtyard and a fitness facility with a separate yoga room.
The District is certified by the U.S. Green Building Council as LEED-Gold, the second-highest certification level that recognizes properties that use less water and energy, and reduce greenhouse gas emissions. In addition to its energy efficient appliances and other amenities, the property also provides preferred parking for fuel efficient vehicles, a bike-sharing program, increased natural light and close proximity to mass transit for ride-sharing.
SmartStop has a managed portfolio that includes more than 68,000 self-storage units and 7.8 million rentable square feet and approximately $1.3 billion of real estate assets under management. The company is the asset manager for 108 self-storage facilities located throughout the United States and Toronto, Canada and two student housing facilities.