Chicago-based asset manager pays $34.7M for student housing property in Fayetteville
by October 5, 2023 10:22 am 3,564 views
Chicago-based Harrison Street has announced a deal to acquire a 20-acre student housing property within walking distance from the University of Arkansas in Fayetteville.
The real estate asset manager purchased The Vue at 1111 Stadium Drive, south of Martin Luther King Jr. Boulevard. Harrison Street did not disclose the purchase price in a news release, but according to Washington County property records, the deal was worth $34.7 million.
The Vue was built in 2013 and includes 180 units with 656 beds. The Michaels Organization of New Jersey partnered with Park Green Properties of Houston to develop The Vue. The Michaels Organization will continue to manage and operate the property.
“We are proud to announce another acquisition of a student housing property, further strengthening our presence in the sector. Demand for student accommodations continues to rise driven by unwavering student interest in the university experience, and we see incredible potential in meeting the growing demand for campus-adjacent assets with this transaction,” said Justin Gronlie, Head of Education Transactions/North America at Harrison Street. “Furthermore, the acquisition of The Vue marks our eighth transaction completed alongside The Michaels Organization, and we are thrilled to continue to expand our portfolio with our trusted long-standing partner.”
According to Harrison Street, The Vue has the largest floor plans on the market with a mix of two-bedroom flats, four-bedroom flats and four-bedroom townhomes with full-bed bath parity. All units are fully furnished and offer amenities including a community pool, study rooms, pet park, hot tub, fire pit, grills, tanning bed, computer lab, volleyball court, fitness center, study lounge and a private shuttle to/from campus.
The Vue has averaged 96% occupancy over the past five years and is currently 100% occupied. Harrison Street’s purchase price equals $192,788 per unit and $52,900 per bed.
Since inception in 2005, Harrison Street has invested over $21 billion across 400 properties, totaling more than 218,000 beds in education and student housing assets at universities throughout North America and Europe.