Champion Real Estate Company has sold Victory on Ellendale, a 96-bed student housing property in Los Angeles for $20.5 million. The firm exited the investment early as a result of strong fundamentals and cap rate compression, according to Garrett Champion, an SVP at the firm.

Campion acquired the property in 2018 for $12.5 million with the intention to hold for the long term. In 2019, it executed a value-add business plan, improving the interior units with new stainless steel appliances, quartz countertops, cabinetry, hardware, lighting, window coverings, vinyl plank flooring, bathroom upgrades and paint. Victory on Ellendale is located at 2652-2656 Ellendale Place near USC. Champion owns five other properties in the area.

Student housing assets performed well throughout the pandemic, outperforming market-rate multifamily. According to a new report from the National Multifamily Housing Council, the US institutional student housing market is poised to remain a steady option for real estate investors, even with tepid enrollment figures for post-secondary schools. Most of that growth, according to NMHC, will occur in public four-year universities.  Demand in public four-year universities will likely be concentrated on the undergraduate side, while private colleges will see demand focus on graduate student housing.