Morgan Stanley, GSA Buy $1B Student Housing Portfolio From Abu Dhabi Fund, Landmark
Morgan Stanley Investment Management and Global Student Accommodation have teamed up to purchase eight U.S. student housing assets across seven states for a combined $1B, one of the largest deals in the student housing sector in recent years.
The partners purchased the 6,200-bed portfolio from Landmark Properties and Abu Dhabi Investment Authority, according to a release.
“We are pleased to partner with GSA to strengthen our market position to capture the ongoing demand for student housing in some of the country’s top university markets,” Morgan Stanley Real Estate Investing Head of U.S. Investments Will Milam said in a statement.
The portfolio includes buildings near Oregon State University, Pennsylvania State University, the University of Virginia, the University of Florida, Texas A&M University, Kennesaw State University and North Carolina State University.
Student housing operator Yugo, part of GSA owner The Dot Group, will manage and rebrand the assets. GSA is a student housing real estate company that manages $8B worth of assets globally, according to its website.
The purchase marks New York-based MSREI and London-based GSA’s entrance into Virginia, Georgia and Pennsylvania and expansions in Texas, Florida, Oregon and North Carolina. Together, the joint venture’s U.S. portfolio extends to 50 properties across 36 cities in 23 states and totals nearly 24,000 beds.
MSREI, which had $1.8T in assets under management as of the end of September, has increasingly established its presence in student housing this year.
In June, it announced a partnership with The Scion Group to acquire a 600-apartment, 2,000-bed portfolio within 2 miles of the University of Mississippi campus.
The move comes as many university students are being lured away from student housing and toward traditional multifamily assets with cheaper rents and concessions.
Annual rent for student housing increased by 0.8%, according to a third-quarter Yardi Matrix report, the slowest increase since Yardi began tracking the sector in 2017. Demand is expected to be further impacted by the slowdown of international students to U.S. colleges under the Trump administration.
