"Those communities hold up very well," Buttarazzi tellsGlobeSt.com in explaining why the Virginia-based investment firm istargeting that demographic. Although cities like Boston, New Yorkor Washington, DC sporting multiple schools might be considered forinvestments, Buttarazzi says he and VCA co-founder David Arthurexpect the real gold will be in cities and towns dominated byhigher education, as in UNH's case. The Sumner package,concentrated within walking distance of UNH, is the largestprivately held student-housing enclave in Durham. "It's a tightmarket up there," says Buttarazzi. "We like the fundamentals alot."

VCA is not limiting the investment program to just housing, withretail and office buildings also seen as prime opportunities. Thestudent population and a resilient local economy can hedge againstregional and national economic trends, says Buttarazzi. Also, henotes, such ancillary commercial space is often needed to supportuniversity functions, or to serve the student consumer.

As for VCA's preferred deal size and characteristics, Buttarazzisays the northeast and mid-Atlantic states will garner the greatestattention at first, although assets in the southeast will beconsidered. There is no set price range, with Buttarazzi notingthat transactions as low as $2 million can often produce solidreturns. VCA will consider value-added plays that promiseadditional profit through capital investment or redevelopment, butButtarazzi says the asset "still has to perform financially" on itsown merit.