ANN ARBOR, MI-Hughes Properties, based in Bingham Farms, MI has joined with Chicago-based Campus Acquisitions LLC to build a 606-bed student housing near the University of Michigan. The two companies recently signed a $45 million financing plan for the $72 million project.
The complex will consist of a 14-story tower about two blocks from the university’s central campus, at 601 Forest. The units will have gourmet kitchens, flat screen televisions and in-suite washers and dryers, says Jason Brown, a VP with CB Richard Ellis Capital Markets. He was joined by James Tramuto and Ryan Reid from CBRE in assisting on the deal.
“There really hasn’t been a lot of new student housing built on or off campus in the past 40 years. Of the two projects going up recently, Aragon Place and 411, both have had strong pre-leasing,” Brown tells GlobeSt.com. “There definitely hasn’t been a lot of higher-end housing, which is growing in popularity around the country. College kids are no longer inclined to get eight guys sharing one small house.”
Brown says his firm helped Hughes find Campus, an experienced student housing developer. The new partner brought the financing. Harrison Street Real Estate provided joint venture equity for the partnership. “Construction financing in Michigan is a challenge, but Ann Arbor is one the tightest student markets in the country, with strong fundamentals and high barriers to entry,” Brown says.
Demolition has already begun on various buildings on the current site, including the popular Village Corner party store. The tower will include 9,000 square feet of retail on the bottom floor, Brown says.
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