LAWRENCE, KS-Vesper Holdings, based in New York City, haspurchased the 248-unit Hawks Pointe Apartments for more than $12million. The collection of three student housing properties, nearthe campus of the University of Kansas, was sold by Aspen SquareManagement.


The 463-bed community is split up into three separateproperties, containing 20 two- and three-story buildings, locatedfrom one to five blocks away from the college campus. Theproperties are fully occupied, says Isaac Sitt with Vesper.Amenities at the various properties include swimming pools, picnicand grilling areas, and a two-story clubhouse. The cap rate on thesale was 7.5%, he says.


Sitt tells that the purchase is part of a strategyto invest in well-located student housing assets with stable,growing cash flows in high barrier-to-entry markets. “A very smallpercentage of students actually live on campus, they just don’thave room for all the students,” Sitt says. The firm made a similarpurchase in the Detroit area in July, buying the 18-building HarborHouse Apartments for more than $13 million.


Student housing has been one of the best performing assets incommercial real estate, Sitt says. “Just in the past three years,the percentage of high school graduates attending college each yearjumped from 67% to 70%. That’s much more than the 1990 figure ofonly 50%, and the population of incoming students just keepsgrowing,” he says.

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