New Palm Beach Group Scoops Up Student Housing
This year, Palm Beach real estate firms Calidus, Pebb Capital, and Pragma Investments joined forces as Collegium Capital Partners with their eyes on a major prize: student housing. The JV recently acquired its first portfolio: 3,155 beds at FSU in Tallahassee, for $43.5M plus a few more mil for renovations. Pebb Capital CEO Todd Rosenberg tells us it's just the start. By the end of this year, he expects Collegium to own 10,000 beds, and by this time next year, 15,000 to 20,000 beds nationwide. (And here we thought college kids never slept.) All the partners are snapped at NY Prime in Tallahassee after they closed on the deal.
Calidus CIO Benjamin Macfarland says that the FSU deal was complicated and value-add, and Collegium is willing to seek out more deals like it, especially through off-market buys. Even though the JV will be highly selective, there’s no shortage of assets to acquire, says Pragma Investments founder Adam Ross. Calidus provides underwriting and asset management (Jonathan Cameron-Hayes is the other principal); Pebb (founded by Jeff and Todd Rosenberg) brings capital, debt, and equity resources; and Pragma oversees capital improvements and rebranding (Todd Benson is the other founder).