BLACKSBURG, VA-Terrace View Apartments, a 756-unit, 1,720-bed student housing community near Virginia Tech has traded for $76.2 million. The seller was a joint venture between Iconic Development and Wheelock Street Capital. MCS Capital Partners purchased the asset and assumed an existing Fannie Mae loan. HFF brokered the transaction.
Located at 413 Hunt Club Road, Terrace View Apartments is within walking distance to the Virginia Tech campus. The fully-leased property delivered in nine phases and has 81 buildings with one-through four-bedroom townhomes and flats averaging 938 square feet each.
Amenities include a newly-renovated clubhouse and fitness center, swimming pool, resort-style hot tub with waterfall, tanning bed, game room, TV lounge, disc golf course, community garden, professional beach volleyball court, dog park, three volleyball courts, four basketball courts and 12 picnic and grill areas.
The HFF's Brian Kelly and Troy Manson, with support from Mike Higgins, represented the seller.
Despite student housing's evolution over the past 20 years—among other advances, it is now a solid institutional investment asset—the space remains very fragmented. Demand for the product, though, remains strong for its stellar performance, according to comments Peter Katz, executive director of Marcus & Millichap's Institutional Property Advisor made at RealShare Apartments 2013 in October. "The sector still offers higher yields and cap rates than traditional multifamily," he said.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
