Investcorp Acquires Two Texas Student Housing Projects

Investcorp completed four student housing acquisitions totaling nearly 3,000 beds for a gross transaction cost of over $300 million. The acquisitions include two in Texas and one each in Oklahoma and Kentucky. The Texas properties are:

·         A 792-bed, 99%-occupied property at Texas A&M University in College Station, Texas;

·         A 486-bed, 98%-occupied property at Texas State University in San Marcos, Texas;

Investcorp’s Michael O’Brien adds, “Many of the top university markets face shortages of housing, and when combined with growing enrollment, this creates favorable operating dynamics which support our long-term conviction in the asset class.”

Nationally, the student housing sector has seen strong performance this academic year, with steady tenant demand and rent growth averaging nearly 5% across the top 200 university markets, which is above the long-term average, according to Yardi.

Investcorp has deep experience in the student housing sector, having owned and managed approximately 20,000 beds across roughly 30 investments.