Exterior of student housing building Core Spaces’ Hub Eugene near the University of Oregon, one of the properties in the portfolio ACC will eventually own.

NEWPORT BEACH, CA—The two pure-play student housing REITs, American Campus Communities and EdR, each made the news last week at different ends of the off-campus vs. on-campus spectrum. ACC said it would pay $590.6 million to recapitalize and ultimately acquire seven off-campus properties from affiliates of Core Spaces and DRW Real Estate Investments. EdR announced the hiring of industry veteran Jason Taylor as SVP within the company’s university partnerships team.

Both of these announcements dovetail with current student housing trends, as identified by Green Street Advisors. Analyst Ryan Burke tells GlobeSt.com that Austin, TX-based ACC’s deal reflects the direction in which REITs and other institutional buyers are headed: namely, away from second-tier markets and lower rents. The four existing properties and three development sites in the Core Spaces/DRW portfolio all are in blue-chip submarkets within walking distance of schools such as the University of Seattle and Purdue University.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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