A sign of the hot student housing market, a Beverly Hills real estate company is in the process of acquiring another Beverly Hills-based company for its student housing property.
Hubilu Venture Corp. on Friday entered into an agreement to purchase Elowen Investments LLC, including its student housing property at 1109 Exposition Blvd. in Los Angeles. The four-bedroom, two-bathroom house is one block from the USC campus and Los Angeles Metro station.
A Hubilu spokeswoman said she could not disclose the price the company paid for Elowen Investments and if other properties were involved. The purchase is still subject to Elowen completing an audit of its financial statements.
Both companies expect the transaction to close in the first quarter of 2018.
According to Redfin, the property last sold in September 2016 for $375K. Redfin estimates the current price as $554K.
The purchase reflects growing investments in the booming student housing industry.
The student housing industry in 2016 reached $9.8B in transactions nationwide, a $4.2B jump from 2015, according to a February CBRE report. Last year marked the sixth consecutive year of all-time record transaction dollar volume, according to CBRE’s National Student Housing Group.
Hubilu CEO David Behrend said in a statement that the acquisition is part of the company’s business plan of targeting properties within walking distance of the USC campus.
“HBUV is finishing 2017 on a strong note, adding to our student housing portfolio by acquiring a turn-key student housing property, bringing net asset value and additional positive cash flow to Hubilu,” Behrend said. “We feel confident that our investors will be pleased with our expansion efforts.”
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