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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).