LOS ANGELES-Funds managed by Colony Capital and R.W. Selby & Co. have acquired a portfolio of seven student housing properties comprising 223 units and 836 beds from Westar Associates for $98 million. The purchase price for the housing, which is adjacent to the University of Southern California, includes the assumption of debt.

Six of the properties are one block north of the USC campus, adjacent to the Shrine Auditorium. The buyers plan to re-brand these as the “Shrine Collection.” The seventh property, called Tuscany, is one block from the southeastern corner of the campus. It is a class A mixed-use development constructed in 2006 that features resort-style amenities including 11,761 square feet of ground floor retail that is 100% leased to national chains such as Coffee Bean, Chipotle and Chick-fil-A, among others.

R.W. Selby & Co., which will manage the portfolio, has acquired and repositioned numerous student housing projects in the Westwood area adjacent to UCLA. Westar Associates will continue to manage the retail space and retain an interest in the project.

The buyer has also committed additional funds to complete various upgrades and capital improvements within the portfolio.

Thomas Barrack Jr., Colony’s founder, chairman and CEO, commented: “This transaction represents a unique opportunity to own some of the best quality student housing product at the doorstep of one of the finest universities in the country, which continues to add student enrollment while its housing supply remains constrained."

Steven K. Fowlkes, R.W. Selby & Co.’s president, added that his company looks forward to "working closely with the university while adding significant value to these assets by employing our more than 30 years of experience managing and developing student housing properties.”