Greystar Acquires Student Housing Tower in Chicago
The property prior to the sale, entered into a 10-year, 340-bed master lease with Columbia College in August. Greystar reports that the remaining 48 beds are fully leased for the 2019/2020 academic year.
CHICAGO—Charleston, SC-based Greystar Real Estate Partners, LLC has acquired the 30 East student housing high-rise property in the South Loop for a reported purchase price of $60 million..
The 134-unit, 388-bed 30 East property was sold by Gilbane Development Co. of Providence, RI, the developer of the project, to Greystar for $60 million, according to a report in Crain’s Chicago Business, which cited property records for the sale price.
The property prior to the sale, entered into a 10-year, 340-bed master lease with Columbia College in August. Greystar reports that the remaining 48 beds are fully leased for the 2019/2020 academic year.
“The acquisition of 30 East complements Greystar’s strategy of acquiring high-quality student housing assets in prime locations like the incomparable South Loop,” says Kevin Kaberna, executive director and leader of Greystar’s U.S. Investment platform. “We believe this was a particularly attractive investment opportunity for us given the lack of purpose-built student housing in the immediate area.”
He adds that the master lease with Columbia College grants Greystar certainty of cash flow from a reputable, creditworthy institution, while the ability to re-lease the units to summer interns allows the firm to ensure the property remains productive year-round
Completed in 2017, 30 East is located within two miles of more than 20 colleges and universities with a combined population of approximately 100,000 students, offering an average door-to-class commute time of under 10 minutes. The property boasts a transit score of 100 and a walk score of 98, and it is located within a five-minute walk to three CTA stops and seven Divvy stations. The property is also near Chicago’s popular Lake Michigan, allowing residents can easily take advantage of local attractions including beaches, Millennium Park, Grant Park and Chicago’s “Museum Campus.”
The 17-story property consists of 27 studio units, 26 one-bedroom units, 55 two-bedroom units, 13 three-bedroom units, and 13 four-bedroom units, with an average unit size of 781 square feet.
All units come complete with modern furnishings, full-size stainless-steel kitchen appliances, in-unit washers and dryers, hardwood-style flooring, quartz countertops, and free cable and wireless high-speed Internet. The building also offers munity amenities such as a third-floor terrace and dog park, a state-of-the-art fitness center and a sky lounge and terrace.