CHICAGO, IL- Marcus & Millichap has announced that they will act as the agents in the sale of five developments near universities across the Midwest.
“At most universities, enrollment is going up, and off-campus housing is becoming more prevalent,” said David N. Gaines, the vice president for investments.
Last February, GlobeSt.com reported that, in 2012, student housing chocked up a record sales volume of $3.7 billion, up from $2.9 billion in 2008.
These properties include the 112-unit Turnberry Village II and the 116-unit Turnberry Village III, both adjacent to Western Illinois University in Macomb, Illinois. Both have existing debt. The latter has a HUD 223 (f) loan with a current balance of over $11 million with a fixed-interest rate of 3.35%, while Village II has a CMBS loan with a balance of over $6 million with an interest rate of 5.6% that comes to term in 2015. The owners will not sell Village II without Village III.
Saluki Apartments in Carbondale, the home of Southern Illinois University, has 198 apartments within walking distance of the school, and is also on the block, along with the Lake Land Living Apartments, a 108-unit development in Mattoon, just down the road from Eastern Illinois University. The only non-Illinois property is the Vista Heights Apartments, a 105-unit community in Kirksville, Missouri, near several schools including Truman State University.
“These universities don’t have a lot of on-campus housing,” Gaines said, and all five communities have always attracted large numbers of students, which should help keep occupancy rates high. Furthermore, “all of these universities are within a few hours of one another,” he added, and although it would be a bit surprising if a buyer picks them all up, “it could be very efficient from an operational standpoint.”