Student by Jo by John P ei Prreissss A niche sector goes mainstream. 22 May | June | 2012
Housing Graduates
In the early 1990s off -campus student housing was primarily single-family homes and small apartment buildings around universities. T e owners were local mom- and-pop operators who rarely had properties in more than one market. But since then, institutional capital has begun to recognize student housing's potential, and this niche play has evolved into a mainstream investment. In 2011, U.S. student-housing transaction activity reached $2.2 billion, according
to Real Capital Analytics, a 40 percent increase from 2010 and well over triple 2009's total. Institutional buyers accounted for 42 percent of these transactions, up from 29 percent from 2010. T e largest student-housing operators are all growing at a brisk pace due to the
fl ow of debt and equity into the sector, and acquisitions have been heavy. Austin, Texas-based American Campus Communities was by far the most active buyer from February 2010 through February 2012, acquiring 23 properties totaling $603.4 mil-
Commercial Investment Real Estate
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