29th Street Capital Expands Student Housing Portfolio

San Marcos, Texas (March 16, 2017) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired two more student housing communities, The Edge and The Lodge, near Texas State University (TSU) in San Marcos, Texas. The portfolio has a combined 1,249 beds across 431 units. 29SC’s strategy is to invest over $4 million to significantly improve the unit interiors as well as each property’s exterior and amenity package. Interior renovations will include new granite countertops, faux wood vinyl flooring, plumbing fixtures, lighting and stainless appliances. Exterior improvements will focus on modernizing the clubhouse and pool area, together with renovating the fitness centers, study rooms and the computer facilities.

“The acquisition of The Edge and The Lodge will more than double our TSU portfolio and bring our total number of TSU beds to 2,230”, said John Price, Ph.D., Senior Vice President with 29th Street. “We are excited to add these two assets to our national student housing portfolio and leverage the value of our local construction teams to execute our business plan.”

Texas State and the greater San Marcos region have experienced robust enrollment, population and job growth over the last five years. Annual enrollment growth over that time has been between 2.5%-4% and has led to a current student body of nearly 39,000 (fifth largest in Texas), and which is expected to exceed 42,000 by 2025.

The properties are located about one mile from the heart of campus and offer bus-shuttle services from the University-sponsored Bobcat shuttle system, which provides easy access to and from classes. Both properties offer high quality amenities, including 24-hour fitness centers, yoga/spin rooms, computer centers, study rooms, salon services, resort-style swimming pools, volleyball/basketball courts and a dog park together with clubhouse facilities containing a kitchen and game rooms.

Dr. Price further added, “These properties provide everything a student looks for when choosing a community to live at while offering easy access to and from campus. We look forward to significantly improving this portfolio and providing the TSU community with a higher quality, yet still affordable, housing option.”

The transaction closed March 16. The sale price was not disclosed.

Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months 29th Street Capital has also acquired 15 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.

29SC’s conventional multifamily portfolio currently consists of more than 7,500 units having acquired over 11,600 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms.

 

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