
KKR Reportedly Sells Student Housing Portfolio for $725M
KKR & Co. has sold seven U.S. student housing properties to Harrison Street, Bloomberg News reported Monday. The price for the portfolio, with 4,500 beds, was $725 million, reported Bloomberg, citing people with knowledge of the deal.
Compared with apartments, student housing currently offers higher returns as measured by cap rates, according to MSCI Real Assets.
“As cap rates of traditional multifamily assets push to new record lows, the relative yield opportunity offered by student housing may further pique investor interest,” MSCI said in a June 22 report.
U.S. student housing deal volume jumped 121% in the first quarter from a year earlier to $2.4 billion, according to MSCI. This past April, Blackstone agreed to pay $12.8 billion for Austin-based American Campus Communities Inc., which says it’s the largest college-housing landlord with 111,900 beds. That transaction is scheduled to close in September.
- ◦Sale/Acquisition