Real Estate Investment
Trusts (REIT)
The BIG news since 2001 is the development of publicly-traded REITs.
Across the United States and Britain, investors have banded together
to develop new student housing complexes for the approximately 70 percent
of students that higher education campuses can not provide with on-campus
housing. These new complexes tend to offer far greater amenities than
converted single-family houses in student ghettos can offer. They are
hugely popular with students, and parents are pleased with the security
features and the fact that most of these developments have fire-suppressing
sprinkler systems (in the United States most student fire-related deaths
occur in older off-campus housing).
StudentHousingPlanet.com
A blog devoted to private student housing developers and real estate
investment trusts. Check out their Reports
page.
Stockpickr.com
has this page devoted to Student Housing REITS holdings
REITs
give student housing the old college try
InvestmentNews - 7 May 2007
... USA — College campuses have become home to a growing real
estate investment category as student housing attracts more attention
from investors, according to a new study by Frankfurt, Germany-based
Deutsche Bank AG’s RREEF Research arm in New York.
Off-campus student housing as an investment is a relatively
recent phenomenon, spurred by three real estate investment trusts created
over the past three years. This development has led to more investor
awareness and a bit more transparency.
Dorm
Deals(it's official if it says so
in Forbes - again, and again, and again) Exploiting the College Boom
Forbes - 11 Dec 2006
...USA - Expanding college rolls mean big demand for private apartment
complexes to house students. Here's a study guide to cashing in.
The obvious ways to capitalize on the baby boom now
revolve around things like pharmaceutical stocks and retirement communities.
A less obvious play has to do with the children of the boomers now crowding
college campuses: buy apartment buildings in college towns.
The college population from ages 18 to 24 is now 9.5
million, up 20% from a decade ago and possibly destined to peak only
in 2010, according to the National Center for Public Policy & Higher
Education. Dorms and fraternities take care of many , but 70% live off
campus. Once distained by investors loath to be landlords for latter-day
Animal Houses, student apartments now are finding their way into the
portfolios of wealthy investors, private equity forms and real estate
investment trusts...
A+
College Real Estate
Forbes - 22 Aug 2006
... Total room-and-board expenses at private undergraduate colleges
averaged $7,791 during the 2005-2006 school year, up 5% from the previous
academic year, according to The College Board's annual report on college
pricing trends. But consider the alternative: investing in real estate.
If done wisely, this nontraditional approach could not only save you
the cost of college housing, it might even help you turn a profit.
Rather than shell out a small fortune for a ratty dorm room or an overpriced
apartment, parents can build equity, generate cash flow and eventually
benefit from real estate appreciation--assuming they are willing to
be landlords and invest some cash up front...
College-Town
Real Estate: The Next Big Niche?
New York Times - 19 Aug 2006
...USA - For some unhappy neighbors, this may conjure up images of ceaseless
parties and beer cans galore. But some investors see something more
propitious: a steady stream of revenue, for starters, and growth potential
for years to come.
“The student housing market is a good niche opportunity
today,” said Kenneth T. Rosen, chairman of the Rosen Consulting
Group, a real estate and economics research company in Berkeley, Calif.
“The demographics are excellent, and the demand is great.”...
Parental
guarantees mean students fail to graduate to adulthood
Scotsman - 19 Aug 2006
...SCOTLAND - I tell you the simplest, most pain-free
way to make £30,000 a year? You buy a run-down property in some
slummy area of a university town, and lie back and let the good times
roll.
Come off it, I hear you say. What crazy devil would
be mad enough to pay £30,000 to rent some nasty, rat-infested
hovel? Well, his name is Edward Hunter. You've guessed it: he's my son.
Number Two Son, in fact. He and seven of his friends
have finally, after being let down several times by crooked landlords,
signed up for a house for them to share next year when they get kicked
out of halls of residence. Between them they are paying £30,000...
Is
Student Housing a Good Investment?
BeancounterBlog.com - 16 Aug 2006
...USA - Although my wife and I are still researching the subject, student
housing still looks to be a good real estate investment. Student housing
properties bring in a steady positive cash flow (even after maintenance
and insurance) and can even bring in enough to cover your mortgages.
But when looking for college towns to invest in, look for areas with
increasing rent prices that you can take advantage of - even if your
child will never attend that school...
Student
housing gets good investment grades Parents of college-bound kids can benefit from enrollment
boom
MSNBC- 3 Aug 2006
...USA - “After funding enrollment, research, and hiring more
professors, there is not enough money left for building dorms,”
explains Donna Preiss, founder and CEO of The Preiss Company, which
rents, manages and develops investor-funded student housing. This is
why many schools are relying on the private market to supply off-campus
housing instead...
The
Investor's "Perfect Storm": Seven Tips for Cashing in on the
Latest Niche Over the next decade, 80 million "Echo Boomers"
will reach their 18th birthdays - and many will head off to college. A new book by Michael H. Zaransky explains how real estate
investors can profit from this unstoppable demographic trend. News Blaze - 7 Jul 2006
...USA - You've always heard that real estate is a smart investment
and you're ready to take the plunge. You're just searching for the right
niche. Perhaps you're a disillusioned-with-Wall-Street novice who hasn't
yet tested the real estate waters. Or maybe you already own a rental
property or two and are ready to take the next step. You may even be
a seasoned investor anxious to try out a whole new playing field. If
you fit one of these descriptions, real estate investment expert Michael
H. Zaransky has two words for you: student housing...
Send
your real estate dollars to college Steady demand, constrained supply make university towns
appealing
MarketWatch - 4 Jul 2006
...USA - You're looking for a sound real estate investment. But prices
have peaked. Your favorite city or resort destination is played out.
Too expensive, and too many ominous forecasts of corrections and oversupply.
You're looking for a good, safe investment and I have one in mind, a
real estate niche that plays defense and offense at the same time: college-town
real estate.
College towns make sense now more than ever -- if you play your cards
right -- for the long term.
Why college towns? Aren't they more expensive? And don't you run the
risk of having your investment "partied" to death? You thought
being a landlord was bad enough, but now for a bunch of rowdy twenty-year-olds?...
Investor
Rents Home to Students In a College Town and Profits
RealEstateJournal - 27 Apr 2006
...USA - The investor: Steve Miller, 45, is a
computer programmer. He was an "accidental landlord" once
before when he bought a home in Florida in anticipation of a move that
never happened. This house is his first deliberate real-estate investment
purchase.
The property: The 1910 Victorian home in Cobleskill,
N.Y., has a 3,600-square-foot main house with two units. There is also
a 2,000-square foot carriage house that includes two apartments. Situated
in a historic neighborhood, the property has broad exterior porches
and old mahogany on the interior. The main house has a first-floor apartment
with one bedroom and one bathroom, and a unit that occupies the second
and third floors with five bedrooms and two bathrooms. The carriage
house has a 700-square-foot studio and a 1,300-square-foot unit with
three bedrooms and two bathrooms. The town is home to the State University
of New York at Cobleskill, which has expanded its curriculum to offer
bachelor's degrees. The university's proximity (15 minutes away by car)
and its lack of student housing presented an opportunity to make money
from undergraduate renters, Mr. Miller says...
The strategy: He prefers to buy and hold real estate,
but he's selling this property because he's moving to Texas later this
year, Mr. Miller says. He chose to rent to college students, he says,
because he can ask for higher rents. While he can receive $5,200 total
per month by renting to students, he would get just $3,000 total if
he relied on local tenants, he says. Because the student rents are so
lucrative, he offers the apartments through a 10-month, August 1 through
May 31 lease. He handles major projects and property repairs during
the summer months, when the units are vacant. Since the property is
already leased for the next school season, the new owner will have tenants
secured for the 2006-2007 academic year -- which is a major selling
point in the eyes of some prospective buyers, he says...
Education
Realty Trust announces private placement agreement
Memphis Business Journal - 23 Sep 2005
...USA - Education Realty Trust, Inc., has entered into an agreement
with selected institutional investors for the private placement of 4,375,000
shares of its common stock at $16 per share.
The offering is expected to generate $70 million, which,
after transaction expenses, is expected to net Education Realty Trust
about $67.2 million.
The money will help fund the acquisition of a portfolio
of 13 collegiate student housing communities in six states. The portfolio
is being purchased from Place
Properties LP of Atlanta. The a sale-leaseback transaction, valued
at $195 million in cash, is expected to close in the fourth quarter.
Memphis-based Education Realty Trust (NYSE: EDR) is one of America's
largest owners and operators of collegiate student housing, owning and/or
managing about 28,910 beds at 35 universities in 21 states...
Opportunities
in Urban Student Housing Commercial Investment Real Estate - Jan/Feb 2005
...USA - The past several years have seen a renewed and growing interest
in urban living. As a notable part of this trend, many college students
now seek out higher education in some of America 's largest cities.
In the past students may have viewed big-city colleges and universities
as gritty commuter institutions, but modern urban students expect the
best of both worlds -- they want the social and cultural opportunities
of a major city with the community and camaraderie of a traditional,
on-campus experience.
Consider, for example, the primary campuses and urban
satellites of traditional Midwest flagship state institutions. Until
10 years ago, students sought to attend the University of Wisconsin
in Madison or the University of Illinois in Champaign-Urbana. Their
urban campuses, almost exclusively, served a separate commuter population.
Today, high-achieving students are as likely to prefer the University
of Wisconsin in Milwaukee or the University of Illinois in Chicago ,
recognizing that the prestige of their degree can be enhanced with four
or more years of living in a vibrant urban area, full of unique opportunities.
This major shift has many of the same characteristics of the overall
redevelopment trends in these same cities, where demand for urban residential
housing also has increased.
Even more remarkable, a majority of students living
on urban campuses come from the surrounding suburbs. These students
and their families view student housing not as a commodity or merely
shelter, but rather as an important lifestyle element of the overall
college or university experience. This demographic shift is central
to understanding the challenges at urban colleges and universities,
where students and their families demand high-quality accommodations,
despite the high land and construction costs institutions face...
What do most college towns have in common? Ivied
lecture halls, libraries, pubs, coffeehouses, fast-food franchises,
bookstores, and lots and lots of $tudent hou$ing.
...We tried to determine which college towns offer solid real estate
investments by looking at the top 50 places for education, as ranked
in the Millennium edition of the Places Rated Almanac (the rankings
were based on such factors as the local school funding, size and
popularity of local libraries, and the college options). The education
scores are based on a scale of 0 to 100, where 100 is the best.
We also factored in the five-year appreciation
rate (the percentage by which property values have increased), as
determined by the Office of Federal Housing Enterprise Oversight.
Boston came out on top, since the Places Rated Almanac ranked it
the second-best place for education (after Raleigh-Durham, N.C.),
and it had one of the highest property appreciation rates--properties
rose by 75% over the last five years. Most of the places that made
this list also happen to be large cities where the real estate is
desirable to the general population, and not just to academics and
students...
Buy
your college kid a condo? Moneycentral.msn ...Here’s what’s happened
in college towns where student enrollment is equal to at least
25% of the local population...
Parents
buying kids' college housing brings profit, life lessons Daily Herald - 11 Jul 2004
...CHICAGO, IL - Two years ago, Deerfield residents Lynn and Steve
Katz bought a new $189,000 three-bedroom condo in a gated community
with a swimming pool and two-car garage in Tempe, Ariz...
It was used by their son instead of a dorm room
or off-campus apartment while he took classes at Arizona State
University.
Trying to capitalize on low interest rates
in recent years, many parents with kids in college towns across
the country have been opting to buy property as a hedge against
rising student housing costs.
Away
at College, but Not Quite Away From Home New York Times - 12 Dec 2003 ...So long, dorm room. These days, a growing
number of parents around the country are buying property for their
college-age children to live in. Real estate agents report that
sales to parents of students are up as much as 25 percent over
the last two years in college towns like Amherst, Mass.; Fort
Collins, Colo.; and Ashland, Ore. And in many cases these are
not basic student-level apartments but entire houses, high-end
condos, even vacation properties for the whole family to share
after Junior graduates. "We've seen a lot more parents in
the last couple of years, probably because the stock market is
not so good and interest rates are so low,"...
Students
ditching dorms to buy houses Maimi Herald - 31 Aug 2003
...The strategy amounts to a pricey but increasingly popular response
to the national campus housing crunch, which has off-campus rents
commanding top dollar and schools like Barry stashing students
in hotels until dorm spaces open up.
Meanwhile, low interest rates are convincing
more parents it makes sense to pay both tuition and a mortgage
to put a child through school...
College
Park Communities Acquires Two More Properties for $38.2 Million
Commercial Property News - 23 Mar 2005
...USA - College Park Communities, the student housing division
of GMH Communities Trust, continues its run of acquiring student
housing property. In its latest purchase, for $38.2 million, College
Park Communities acquired two student housing properties serving
Pennsylvania State University in State College, Pennsylvania.
Together, the two properties, State College Park and Nittany Crossing,
have 400 units, with the former being 86 percent occupied, and
the latter 99 percent occupied. This acquisition brings College
Park Communities total student housing assets purchased in 2005
to eight, with an aggregate value of about
$171.4 Million.
Just last week, for $48.7 million, College Park
Communities purchased three student housing properties in Nebraska,
West Virginia and Ohio, serving the University of Nebraska, West
Virginia University and Bowling Green State University, respectively.
In a separate transaction last week, the company purchased a $51.4
million dollar student housing property that serves California
State University in Sacramento. College Park Communities kicked
of 2005 with the $33 million purchase of two properties serving
the University of Michigan, Ann Arbor...
American
Campus Communities Announces Third-Party Development Project for
Historical Building at Cleveland State University
Daily Business News - 22 Mar 2005
...CLEVELAND, OH - American Campus Communities Inc. (NYSE:ACC)
today announced the commencement of construction on the renovation
of Fenn Tower, a historic 21-story high rise, originally built
in 1930 and located on the Cleveland State University campus.
American Campus Communities is providing third-party development
and construction management services for the $38.4 million project.
A tax-exempt bond issuance will fund the student housing project...
News:
GMH Communities Trust Announces Quarterly Dividend
mysan.de - 18 Mar 2005
... NEWTOWN SQUARE, PA - GMH Communities Trust (the "Company")
announced today that its Board of Trustees has declared a regular
quarterly dividend of $0.2275 per share on its common shares of
beneficial interest, payable on April 15, 2005 to shareholders
of record at the close of business on March 30, 2005. The dividend
represents the Company’s first full quarterly dividend since
completion of its initial public offering in November 2004...
GMH
Communities Trust "outperform," estimates reduced
NewRatings.com - 1 Mar 2005
...NEW YORK, NY - Analyst William A Crow of Raymond James maintains
his "outperform" rating on GMH
Communities Trust (ticker: GCT), while reducing his estimates
for the company. The target price is set to $14.
In a research note published yesterday, the analyst
mentions that the company reported its 4Q04 FFO per share short
of the estimates. GMH Communities Trust’s share price declined
5% on news of the company’s disappointing guidance for 2005,
the analyst says. GMH Communities Trust's acquisition pipeline
is robust and the performance of the company's core operations
in the student housing and military housing sectors is healthy...
ACC
to buy Denton student housing property
Business Journal - 1 Mar 2005
...DENTON, TX - American Campus Communities Inc., the first
Austin real estate investment trust to go public, is planning
to scoop up a student housing property in Texas.
ACC, which is based in Austin, has been on a
buying spree, most recently buying five properties in college
towns in Florida.
The REIT will continue its expansion with the
purchase of another student housing property near the University
of North Texas in Denton.
American
Campus to buy student apartments in Florida
Business Journal - 25 Feb 2005
...GAINESVILLE, FL - American Campus Communities Inc. agreed to
buy a student housing complex in Gainesville,
Fla., for $47.5 million, the company said Friday.
American Campus (NYSE: ACC), one of the largest
owners, managers and developers of student housing in the country,
signed a contract to buy The Exchange at Gainesville, a 1,044-bed
apartment complex near the University of Florida campus.
The deal is expected to be completed by the end
of the first quarter.
American Campus, based in Austin, owns and manages
22 student housing communities with about 14,100 beds.
GMH
Communities Trust To Acquire Three Student Housing Properties
in Nebraska, West Virginia and Ohio
PRNewswire - 10 Feb 2005
...NEWTOWN SQUARE, PA - GMH Communities Trust announced today
that it is finalizing due diligence on a portfolio of three Class
A student housing properties currently under contract, located
near the campuses of University of Nebraska, West Virginia University
and Bowling Green State University. The portfolio, consisting
of an aggregate of 1,712 beds/444 units, will be acquired for
an approximate purchase price of $48.7 million. The purchase includes
the assumption of approximately $26.5 million of existing fixed
rate mortgage debt with respect to two of the properties, and
the placement of approximately $9.2 million of new debt with respect
to one of the properties. The transaction is expected to close
by late February 2005, subject to customary closing conditions,
including completion of the lender's agreement to the assumption
of the existing debt and the successful placement of the new debt.
The properties are all less than three years
in age and of a high asset quality, consistent with the Company's
student housing portfolio characteristics.Additionally, all of
the properties have the advantage of being in close proximity
to each of the university's campus and offer resort- style amenities
such as fitness centers, computer labs, swimming pools, tanning
beds and furnished units. College Park Management, LLC, the student
housing division of GMH Communities Trust that operates and manages
on and off campus student housing communities in 36 major college/university
markets, would manage the properties upon completion of the acquisition...
Education
Realty, GFI IPOs price
MarketWatch - 25 Jan 2005
...SAN FRANCISCO, CA - Education Realty Trust and GFI Group saw
their initial public offerings price late Tuesday for next-day
trade. Education Realty Trust's (EDR: news, chart, profile) IPO
of 19 million shares priced at $16 each, raising $304
million.
The pricing came in at the low end of the expected
$16 to $18 range and the number of shares was raised from 18.3
million.
J.P. Morgan led the underwriting.
Shares of the Memphis, Tenn.-based real estate
investment trust, which specializes in investments in student
housing, are due to start trading on the New York Stock Exchange
Wednesday.
Prime
Property Investors, Ltd. Enters Student Housing Market PRNewswire - 12 Jan 2005
...NORTHBROOK, IL - Northbrook, Illinois based Prime Property
Investors, Ltd. Co-CEOs Barbara J. Gaffen and Michael H. Zaransky
announced the firm's entry into the Student Housing market with
the purchase of a multi-family apartment building on the campus
of the University of Illinois at Champaign-Urbana. Located at
312 West Springfield, the property built in 2000, features luxury
amenities including central air, on site parking, in unit washer
dryers, and individual balconies.
Located within walking distance of the heart
of campus, the property is 100 % student occupied and features
a commercial office space component complimenting the needs of
local businesses and medical care providers.
With the initial purchase, Prime announced plans
to build a substantial portfolio of Student Housing properties
on major University campuses throughout the country. "A growing
student population coupled with a shortage of quality student
housing has created an opportunity for significant appreciation
in the student housing niche," said Zaransky.
ADVERTISEMENT
Gaffen explained that in addition to Prime's
own investment in each property, the firm will use institutional
and high net worth individuals' investor equity to fund the growth
of the student housing portfolio. Gaffen stated, "A well
located student housing property on a major university campus
provides a predictable rate of return at a low level of risk for
an astute investor." The current demand by institutional
and high net worth investors for real estate opportunities is
expected to drive Prime's ability to complete a large number of
transactions.
Prime Property Investors, Ltd. has received numerous
awards and recognition for its real estate developments and specializes
in multi-family apartment property investment with an emphasis
on apartment rental properties and condominium conversion projects.
In 2004, in an independent study, Professional Builder Magazine
named Prime one of the nation's top 50 residential development
firms to work for...
GMH
Communities Trust Announces Acquisition of Two Student Housing
Properties in Ann Arbor, Michigan Totaling 475 Units/855 Beds $33 Million Transaction Represents Latest Acquisition
by Newly Formed REIT
PRNewswire - 6 Jan 2005
... NEWTOWN SQUARE, PA - GMH Communities Trust today announced
that its student housing division, College Park Communities, has
acquired two properties, WillowTree Apartments and WillowTree
Towers, for $33,075,000. WillowTree Apartments, a 312 unit/572
bed student housing property, and WillowTree Towers, a 163 unit/283
bed student housing property, serve the University of Michigan.
This acquisition will be funded with proceeds from the Company's
Initial Public Offering, which was closed on November 4, 2004,
and with assumed debt.
"We're pleased to announce the acquisition
of the WillowTree Apartments and Towers and look forward to serving
University of Michigan students," commented Joseph M. Coyle,
President of College Park Communities. "At GMH Communities
Trust, we remain focused on building market share by adding quality
assets such as this to our diverse student housing portfolio."...
GMH
Communities Trust Declares Quarterly Dividend
Yahoo - 16 Dec 2004
...NEWTOWN SQUARE, PA - GMH Communities Trust (NYSE: GCT - News)
declared on December 15, 2004, a dividend of $0.16 per share of
common stock payable January 14, 2005 to shareholders of record
at the close of business on December 30, 2004.
GMH Communities Trust (http://www.gmhcommunities.com)
is a publicly traded Maryland real estate investment trust (REIT).
It is a self-advised, self-managed specialty housing company focused
on providing housing to college and university students residing
off-campus and to members of the U.S. military and their families
residing at installations throughout the country. GMH Communities
also provides property management services to third party owners
of student housing, including colleges, universities and other
private owners. The Company is based in Newtown Square, PA and
employs approximately 1,200 people throughout the United States
of America...
GMH
Communities Prices at $12 per Share
Commercial Property News - 28 Oct 2004
...PHILADELPHIA, PA - GMH Communities Trust began trading on the
New York Stock Exchange today, selling almost 28.6 million common
shares at $12. After adjusting its IPO filing in August to $400
million, the trust will fall shy of its anticipated proceeds by
$88 million.
The Pennsylvania-based REIT, which invests in
student and military housing, originally filed for a $250 million
public offering June 10, 2004 with common shares expected to price
between $13 and $15. But according to Gary Holloway, chairman
& CEO of GMH Communities, the trust decided to adjust its
filing because of a number of deals still under contract at the
time.
Two weeks after the adjustment, GMH Communities
L.P., the name under which the trust was operating, closed on
a $246 million acquisition that added 15 off-campus student apartments
to its portfolio...
American
Campus Communities initiated with "buy"
New Ratings - 23 Sep 2004
...Analysts at KeyBanc Capital Markets initiate coverage of American
Campus Communities Inc (ticker: ACC) with a "buy" rating.
The 12-month target price is set to $21.
In a research note published yesterday, the analysts
mention that the company is poised to benefit in the forthcoming
months from a supply/demand imbalance in the student housing sector
and an improving outlook for the privatization of community ownership.
The analysts expect the expansion of American Campus Communities'
development pipeline and acquisition strategy to boost the company's
growth in the near term...
GMH
Communities, LP Purchases 15 Student Housing Communities In 13
States Totaling 8,845 Beds for $249 Million
PR Newswire - 30 Aug 2004
...GMH Communities, LP, through
various wholly owned subsidiaries, announced the purchase of 15
garden-style
student-housing communities in 13 states, totaling 2,571 units/
8,845 beds for
$249,000,000. College Park Management LLC, a subsidiary of GMH
Communities,
will manage the portfolio. College Park Management is the student
housing
division of GMH Communities that operates and manages on and off
campus
student housing communities in 32 major college/university markets.
GMH purchased 13 of the 15 properties from Sterling
University Housing,
LLC, and its affiliates located in Houston, Texas; Collegiate
Hall was
purchased from CHP Birmingham LLC, Greenville, South Carolina
and Campus Club
was purchased from States Property Company, LLC, Jacksonville,
Florida. These
state-of-the-art communities were built between 1999 and 2004
and contain
resort-style amenities such as DVD theaters, pools, gyms, fitness
and computer
centers and individual leases...
American
Campus Communities upgrades IPO target by $39M
Austin Business Journal - 28 Jul 2004
...AUSTIN, TX - Austin-based student housing company American
Campus Communities Inc. plans to raise $39 million more than anticipated
for its initial public offering.
The company initially had planned to raise $253
million, but it has increased that estimate to $292.2 million
for its IPO. American Campus has set the price for its shares
at $19 to $21...
