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5/01/17
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Newport Beach-based Arrimus Capital has acquired Campus Vue, a 465-bed, Class A student housing property adjacent to the University of Houston in Houston, TX. It was sold by Fountain Residential Properties. A price was not disclosed.
Campus Vue, comprised of 145 units within two five-story buildings, is located at 4459 N. MacGregor Way, less than a block from the University of Houston, a Tier 1 school with more than 42,000 students. The property is the only off-campus housing option adjacent to the university and was voted “Best Off-Campus Apartments” in 2016 by the university’s students.
Campus Vue features fully furnished units with high-end finishes including granite countertops, pendant lighting, stainless steel appliances, and washers and dryers in every unit. Community amenities include a spacious game room, fifth-floor outdoor deck with views of the city of Houston, large study lounges with conference rooms, and a resort-style pool and courtyard area. The property is currently 96% occupied.
Campus Vue is a certified green property through Fannie Mae’s Green Globes program which incentivizes environmentally sustainable multifamily investments. The Green Globes rating system is administered by the Green Building Initiative, a nonprofit organization dedicated to accelerating the adoption of green building best practices.
Earlier this year, Arrimus acquired the 1,044-bed Forum at Denton Station student housing property in Denton, TX. Led by partners Ray Wirta, Chris Lee and Ryan Gahagan, Arrimus has closed more than $100 mil in student housing properties in the last 90 days.
According to Lee, Campus Vue offered “outstanding fundamentals and was a missed opportunity for a strategic REIT buyer. We were able to solve some operational challenges to obtain an attractive valuation, and are forecasting superior risk-adjusted returns without taking into consideration a potential phase 2 development opportunity. Campus Vue is a very high quality property that would be a flagship asset in any REIT portfolio.”
Lee added that a few off-campus student housing projects are in the development pipeline, but none are adjacent to the university. Only 50% of freshmen and 19% of all undergraduates currently live on campus, leaving the remaining student population to find off-campus housing.
Jaclyn Fitts and Casey Schaefer, both with CBRE’s National Student Housing team in Dallas, represented both Arrimus and Fountain Residential Partners in the transaction.
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