Candlebrook Jumps into Student Housing with Big Buy
Candlebrook entered the student housing fray with a five-property portfolio acquisition; this launches its student housing platform, Letter 9. Candlebrook president Neil Rubler tells us the multifamily firm has been operating in the Northeast and Mid-Atlantic suburban areas and was looking to diversify.
The deal (in a JV with Lubert-Adler Partners) included the $230M purchase of: The Dillon (formerly The Collegiate on Paterson), serving the University of Indiana; The Tyler, serving Indiana University-Purdue University Indiana (pictured); The Blake, (formerly The Collegiate on Busbee), serving Kennesaw State University; The Wyatt (formerly The Collegiate on Angliana), serving the University of Kentucky; and The James (formerly The Collegiate at VCU), serving Virginia Commonwealth University.
Neil says getting Letter 9 managing director John DeRiggi (pictured) to join cemented the decision to move into student housing. John was previously at GMH, which eventually sold its 60,000 beds to ACC. The portfolio acquisition is full of assets in Tier 1 markets with at least 20,000 students. Another plus of these properties: they’re all near something that students want, whether it's nightlife, athletic facilities or campus. For the upcoming holidays, John tells his family is coming to town. Neil plans to do some skiing and hang out with his kids.