Newmark announces the sale of The Element at University Park, a 312-bed student housing asset built in two phases in 2000 and 2008. The community is in Bryan, Texas near Texas A&M University and was 97 percent occupied and 85 percent pre-leased for the upcoming Fall 2020 semester at the time of sale.
The seller–Aspen Square Management, a Massachusetts-based real estate investment and property management group–was represented by Vice Chairman and head of Newmark’s Student Housing group Ryan Lang, along with Managing Director Brandon Buell and Associate Director Jack Brett. Managing Directors Brad Shaffer and Brandon Miller from Newmark’s Multifamily Capital Markets group collaborated with the Student Housing group to bring the parties together in an example of the strength of Newmark’s cross-platform structure. The Element at University Park traded to buyer, Miami-based One Real Estate Investment (OREI), a disciplined investor, manager and operator focused on acquiring multifamily assets in the Southeastern United States and Texas, for an undisclosed price.
“Major Tier-I institutions continue to be highly sought after, particularly amidst the short-term uncertainty, as capital continues to pursue the sector for the certainty it will provide in August,” said Lang. “Assuming universities resume in-person classes this fall, student housing is expected to perform exceptionally well, continuing to demonstrate the resiliency seen during the last downturn.”
The Element at University Park presented a value-add opportunity for investors, as well as the flexibility to lease by unit or by bed. As of April 30, 2020, Texas A&M University, which annually enrolls nearly 60,000 students, plans to fully reopen for in-person classes for the Fall 2020 semester.
“Despite the uncertain economic and lending environment we are in today, OREI saw The Element at University Park as an opportunity to acquire a stable, cash flowing asset well below replacement cost. The property also represented a value-add opportunity as the interiors had not been upgraded since original construction,” said Shaffer.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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