Newmark closed the sales of The Avenue and The Lex, two mid-rise student housing assets consisting of 1,007 beds located in Indianapolis, Indiana, and Lexington, Kentucky, respectively. The two transactions closed within a week of each other for a combined value of about $90 million.
Newmark Vice Chairman and head of the Student Housing Group Ryan Lang and Associate Director Jack Brett, in cooperation with Newmark Vice Chairman Debbie Corson in Indiana, represented the seller, Preiss Companies in partnership with Investcorp, in the trade of The Avenue to buyer Student Quarters, an Atlanta-based student housing asset management company.
Lang and Brett, also in cooperation with Corson in Kentucky, represented the seller, CF Real Estate Services in partnership with SFO, in the sale of The Lex to buyer Boston-based real estate investment company William Fideli Investments. Transaction Manager Ben Harkrider’s support was also instrumental throughout the process.
The Avenue comprises 143 units and 358 beds steps from Indiana University – Purdue University Indianapolis. The asset is located in downtown Indianapolis and offers unrivaled property amenities, retail options and is the only asset in the IUPUI submarket that provides formidable one-, two-, and four-bedroom options with a variety of floorplan styles for each unit mix. The offering sits on 3.44 acres directly adjacent to the northern edge of campus.
The Lex features 266 units and 649 beds and is walking distance to the University of Kentucky (UK). The asset is located on the north side of campus and is the closest purpose-built student community to Rupp Arena, home to UK’s powerhouse men’s basketball program. The partially completed renovation offers the buyer a value-add asset with proven upside.
According to Newmark Research, the $90 million transaction was one of the largest student housing trades in the U.S. to occur during the COVID-19 pandemic. The deal represented 26 percent of the student housing market in the Midwest region in terms of sales volume since April.