Scion Student Communities, LP has purchased a multi-state student housing portfolio for approximately $1.1 billion. The acquisition includes 24 assets in 20 different markets, many in the Midwest. The University of Minnesota’s Venue at Dinkytown, the Annex at Miami University of Ohio and University of Nebraska’s 8N Lofts were all included in the deal.
The bulk of the transaction consists of 22 properties from affiliates of Harrison Street Real Estate Capital. Two recapitalized properties previously owned by Scion-affiliated private syndications were also included. The portfolio represents a mix of recently developed Class-A properties in primarily tier-1 university markets, as well as select value-added assets.
Prior to this deal, Scion already held properties throughout the U.S., with many near Midwest universities, such as Perdue, Western Michigan University, DePaul and the University of Tennessee. “This transaction is particularly strategic, providing for the addition of six properties in markets in which our joint venture already has a presence,” said Robert Bronstein, Scion’s president. “This is consistent with our strategy to concentrate our investments in targeted markets by owning multiple properties with diverse product types and rental price point options.”
Scion’s diverse portfolio now includes 73 student housing communities in 52 top-tier university markets, comprising over 46,000 beds. The average effective age of the portfolio is less than five years and over 70 percent of the assets are located within a mile of their respective campuses.
Scion Student Communities is a joint venture of Canada Pension Plan Investment Board (CPPIB), GIC and The Scion Group LLC. Since the joint venture’s inception in January 2016, it has completed over $4 billion in investments. CPPIB and GIC each own a 45 percent share in the newly acquired portfolio with the remaining 10 percent under Scion’s control.
