KKR is buying a portfolio of 19 student housing properties from Blackstone Real Estate Income Trust for $1.64B. The assets, which include more than 10,000 beds, serve 14 four-year public universities in 10 states.

BREIT acquired the portfolio in 2018 for $1.2B as part of a joint venture with Greystar Real Estate Partners, which at the time acquired student housing giant EdR for $4.6B.

“This transaction is an excellent outcome for BREIT’s investors and demonstrates the strong demand for the high-quality assets,” BREIT co-head of Americas Acquisitions Jacob Werner said in a statement. “We continue to have long-term conviction in student housing and are actively growing through BREIT’s student housing platform, American Campus Communities.”

The deal represents further expansion into student housing by KKR, an asset base it manages through University Partners, which KKR launched in 2016. Over the last decade, the investment giant has grown its student housing portfolio and has expanded University Partners third-party management business.

Including the latest acquisition, University Partners will own and manage over 25,000 student housing beds, representing nearly $4B in asset value, according to KKR.

As a sector, student housing is having a good year, with leases signed at buildings still under construction climbing to a seasonal record high of 54.5% for the 2024-2025 academic year, according to a Yardi Matrix student housing report. Twenty-two schools are already 75% pre-leased, with four of them above 90%, according to Yardi.