HARRISONBURG, VA-A joint venture of Wood Partners and Franklin Holdings, based in Charlotte, NC, and Key Bank has sold an 816-bed, 228-unit student housing facility here, which caters to students at James Madison University. JMG Realty of Atlanta and Trident Partners of New York City partnered to buy the property, which is trading for $32.7 million, or $143,640 per unit. Peter Katz, a senior director in the Phoenix office of Institutional Property Advisors, and Henry Schuldinger, an associate in the Washington, DC office of Marcus & Millichap Real Estate Investment Services, represented the sellers. Katz also represented the buyer.
The property, North 38, was built by Wood Partners and delivered in 2009. It was 94.6% occupied at the time of the sale. The company used green building technology and earned an Energy Star certification as a result, Katz said in a statement. He also noted that the property offers unlevered returns, coupled with layering in acquisition financing, that are close to 80% LTV. This property is also expected to deliver strong double-digit leveraged returns as well.
Located on 19 acres at 1190 Meridian Circle, North 38 consists of 96 three-bedroom units and 132 four-bedroom units that are fully furnished and leased by the bedroom. There is also a pool, fitness room, tanning beds, spa, ping-pong table, garden, game room with billiards, computer lounge, basketball courts, barbecue grills and a clubroom. James Madison University has a current enrollment of 18,000.
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