Michaels Sells Three Student Living Assets
FILED TO: What's New
The Michaels Organization has completed the sale of three purpose-built student living properties, two in New York, and one in Texas.
Due to strong execution, Michaels was able to successfully sell all three of these properties at a price that exceeded initial underwritten returns.
“The strategic sales of these high quality, financially successful assets will continue to fuel future growth of Michaels’ student living and market-rate developments, whilst at the same time delivering attractive returns to our investment and capital partners who have supported us in these deals,” said Michaels Executive Vice President Michael Flanagan.
The two New York sales include 505 on Walnut, an off-campus community located adjacent to Syracuse University, which Michaels completed in 2018. The 126 unit/363 bed property features modern layouts and upscale amenities, including Smart Home Technology. Michaels will continue to manage the property, which is currently 100% pre-leased for Fall 2022.
Michaels recapitalized APEX, one of the largest off-campus student housing projects in New York. Positioned directly across the street from the Rochester Institute of Technology, a leading STEM-focused university in Rochester, NY, the property offers an innovative community with modern apartments in one- to five-bedroom layouts. The property features abundant community spaces and Smart Home Technology, an Esports arena, and electric car charging stations. The transaction, which was completed in December, is one of the largest single-asset student housing transactions completed in 2021. Michaels will continue to act as property manager for APEX.
Michaels also sold Hill Country Place, a 228 unit/696 bed student housing community located off campus in close proximity to the University of Texas- San Antonio. Michaels acquired the property in 2017 as a value-add proposition, repositioning the asset, which at the time of sale was 97.4% leased.
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