CHICAGO—South Street Capital, a Chicago-based real estate firm, together with Muinzer Management, have just acquired a 290-bed student housing portfolio near Purdue University in West Lafayette, IN, for $13.2 million. The portfolio consists of five adjacent apartment buildings at 300, 310, and 318 North Salisbury, and 229 and 235 Littleton.

The off-market transaction allowed the two firms to expand their holdings in this vibrant student housing market. The firms plan to upgrade these properties. This move is similar to others made by many providers that now see opportunities in the US student housing sector as it expands.

“Many of the universities in the Power-5 Conferences are expanding horizontally, not vertically,” Marc Muinzer, founder of South Street, tells GlobeSt.com. “The result is a continued land crunch close to campus locations. We feel that this land crunch is going to be exacerbated over the next 10 years. Many of the big schools are going to get much bigger. We believe Purdue is one of the schools that fits this trend. In the best near campus locations, we are bullish on rents and land prices over the medium and long-term.”

As reported in GlobeSt.com, Purdue Research Foundation and Browning Investments LLC have just formed a partnership to develop about 450 acres at the west end of the Purdue University campus called the Purdue Innovation District. The plan will form over the next 15 to 20 years and eventually total several million square feet with more than $1 billion in total investment.

“We plan to systematically upgrade select units with new kitchen appliances, countertops and flooring,” Muinzer adds. “The existing assets have incredible bones and the locations are fantastic but we absolutely intend on freshening up the interiors.”

South Street is now the largest privately-held landowner near Purdue. But the firm still has its eye on other possible acquisitions, he says. “We are looking to acquire an additional $75 million of existing near campus assets at the Power-5 Conferences over the next 18 months.”

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