March 30, 2022 10:00 AM
Newmark announces the sale of a four-property portfolio of mid-rise student housing properties totaling 1,441 beds. The newly constructed core assets are located adjacent to major universities, all with strong athletic programs—Gather Illinois serves the University of Illinois, Gather Uptown serves East Carolina University, Gather Dickson serves the University of Arkansas and Gather Southern serves the University of Memphis.
“Student Housing continues to see significant movement toward scaling and portfolio opportunities given the long-term growth trends and stability of the asset class,” said Vice Chairman and Head of Newmark’s Student Housing group Ryan Lang. “This portfolio checks many of the boxes that major institutions are focused on right now related to Power Five status, pedestrian access to campus and stabilized occupancy.”
Lang, Director Jack Brett and Transaction Manager Ben Harkrider, in cooperation with Senior Managing Director Tim McKay, Vice Chairman Debra Corson, Vice Chairman Blake Pera and Vice Chairman Dean Smith, represented the seller, Rael Corp, in the transaction.
Offering pedestrian access to all university classrooms, the properties average a 0.1-mile distance to their respective campuses. Gather Illinois is located at 410 North Lincoln Avenue in Urbana, Illinois; Gather Uptown at 400 South Greene Street in Greenville, North Carolina; Gather Dickson at 333 St. Charles Avenue in Fayetteville, Arkansas and Gather Southern at 3655/3695 Southern Avenue in Memphis, Tennessee.
The properties are well-positioned for future growth. The Urbana, Greenville, Fayetteville and Memphis markets all maintain an average occupancy of above 92.5 percent and rents are projected to grow between 2.0 and 2.5 percent annually for the next four years.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.9 billion for the year ending December 31, 2021. Newmark’s company-owned offices, together with its business partners, operate from approximately 160 offices with over 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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