August 15, 2022 9:30 AM
Newmark announces the sale of 43 and the financing of 11 student housing properties—totaling over $2.9 billion in transaction value—during the first two quarters of 2022. Located across the U.S., the assets span Alabama, Arkansas, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Missouri, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee and Texas. According to Real Capital Analytics, Newmark ranked #1 in Student Housing transactions, in terms of dollar volume, capturing 38% of the overall market share.
Newmark Vice Chairman and head of the company’s Student Housing group Ryan Lang, Director Jack Brett and Transaction Manager Ben Harkrider, in cooperation with locally licensed Newmark professionals, facilitated the investment sale transactions. The Debt & Structured Finance team consists of Executive Managing Director Ben Roelke, Senior Managing Director Ian Walker and Director Trent Houchin.
“The fundamentals of the student housing sector have remained strong, attracting new equity entrants that are excited about yield premiums relative to market rate multifamily,” said Lang. “With the capital supply pipeline at an all-time high and multiple strategic recapitalization and portfolio opportunities, we expect strong activity throughout the remainder of the year.”
“Lenders have broadly recognized student housing’s proven resiliency through the pandemic, and that recognition has produced a robust lending market over the past 18 months,” Roelke said. “Current market volatility has made for an abrupt change as debt providers adjust to a rising rate environment and utilize conservative underwriting standards, however, the capital markets remain liquid for student housing transactions.”
The astounding performance of the student sector is driven by outsized enrollment growth expected for the Fall 2022 semester, combined with a substantially tapered supply.
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 of nearly $3.2 billion for the twelve months ending June 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 6,500 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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