Colliers International STUDENT HOUSING National Sales Report · 1 | Colliers International |...

National SalesReport

STUDENTColliers International

HOUSING

2016 Year End

Colliers International | Student Housing Group | 3

In 2016 there were 330 recorded student housing transactions totaling over $6.6 billion in sales with an average sales price of $26,377,627 (252 of 330 properties reported). Total reported transactions increased from 221 in 2015 to 330 in 2016. Total sales volume also increased by over 62% from $4.0 billion in 2015.

There were 56,174 units and 140,143 beds transacted in 2016 averaging 180 units and 528 beds per transaction. 2016 saw an increase of 52% in total units and 58% in total beds transacted. The average PPU was $200,915 and PPB was $67,769.

SOUTHEAST

NORTHEAST

MIDWEST

SOUTHWEST

WESTERN

NATIONAL SALES

10% 20% 30% 40%

3 | Colliers International | Student Housing Group | www.studenthousingbrokers.com

TRANSACTIONS

330 $6,647,162,017

NORTHEAST MIDWESTSOUTHWESTSOUTHEASTWESTERN

33824412150

10%25%13%37%15%

$1,175,656,342 $1,195,132,051$857,353,572$2,258,115,366$1,160,904,688

18%18%13%34%17%

10% 18%

25%18%

34%

17%

13%

18%10%

13%

37%

15%

VOLUME

TRANSACTIONS

VOLUME

All data is based on reported transactions from Real Capital Analytics (RCA),


TIER ONETier One markets con-tinued to experience tre-mendous year-over-year growth in 2016.

There were 232 recorded transactions in Tier One Markets throughout 2016 which totaled more than $4.6 billion in sales (175 of 232 properties report-ed) with an average sales price of $26,772,431.

Collectively, 41,509 units and 107,175 beds transact-ed in 2016 averaging 180 units and 528 beds per transaction. The average price per unit (PPU) was $200,915 and the average price per bed (PPB) was $67,769. Tier One markets with 20,000 students or more accounted for ap-proximately 70% of total sales dollars for the year.

With an average sales price of $26,772,431 in 2016, (175 of 232 proper-ties reported) it can be es-timated that approximately $6,211,203,962 in total transactions (232 report-ed properties) occurred in Tier One markets alone for the year.

Tota

l Uni

ts S

old

41,5092015 | 29,870

107,1752015 | 72,693

$200,9152015 | $199,298

$67,7692015 | $73,439

Tota

l Bed

s S

old

Aver

age

Price per Unit

Aver

age

Price

per Bed

2016 Year End Report | Tier One

Tota

l Tra

nsac

tions

2322015 | 169

$4.685M2015 | $3.200MTo

tal S

ales

Volume

(20K+ ENROLLMENT)

37.3%

39.0%

47.4%

46.4%

0.81%

-7.72%


Tota

l Uni

ts S

old

14,6652015 | 7,045

32,9682015 | 15,753

$149,8792015 | $163,931

$54,8632015 | $54,748

Tota

l Bed

s S

old

Aver

age

Price per Unit

Aver

age

Price

per Bed

Tota

l Tra

nsac

tions

982015 | 52

$1.962M2015 | $880KTo

tal S

ales

Volume

TIER TWO& THREE

Tier Two & Three Markets experienced significant growth from 2015, outjpac-ing historical performance over hte past five years.

With 98 recorded transac-tions in Tier Two and Tier Three markets in 2016, there was more than $1.9 billion in sales (77 of 98 properties reported) with an average sales price of $25,480,346.

Collectively, 14,665 units and 32,968 beds transact-ed in 2016 averaging 150 units and 366 beds per transaction. The average PPU was $149,879 and the average PPB was $54,863. Tier Two and Tier Three markets with less than 20,000 students accounted for approximately 30% of total sales dollars for the year.

With an average sales price of $25,480,346 in 2016, (77 of 98 properties reported) it can be esti-mated that approximately $2,497,073,873 in total transactions (98 properties reported) occurred in Tier Two and Tier Three mar-kets alone for the year.

(0-10K & 10K-20K ENROLLMENT)

2016

88.5%

108.2%

109.3%

145.3%

-8.57%

0.21%

Year End Report | Tier Two & Three

Colliers International | Student Housing Group | 5

OHIN

WI

MI

MN

IA

ILMOKS

NE

SD

ND

ME

NH

VT

NY

PA

MACT

NJ

RI

DEMD

LA

TX

OKNM

AZ

SOUTHEAST

WA

OR

CA

NV

ID

UTCO

AK

HI

MT

WY

WV

VA

NC

SC

GA

FL

KY

TN

ALMS

AR

LA

SOUTHWEST44 TRANSACTIONS$857 K9,016 UNITS24,348 BEDS

WEST50 TRANSACTIONS$1.160 M6,194 UNITS13,145 BEDS

MIDWEST82 TRANSACTIONS$1.195 M11,346 UNITS27,769 BEDS

121 TRANSACTIONS$2.258 M24,000 UNITS317,855 BEDS

NORTHEAST33 TRANSACTIONS$1.175 M5,618 UNITS13,487 BEDS

REGIONAL MARKET SUMMARIES


PORTFOLIO TRANSACTIONS

Harrison Street Real Estate Capital (HSRE), the largest private equity firm focused on real estate investments in the education, healthcare, and storage sectors, recently completed the acquisition of Campus Crest Communities (CCG) in March of 2016. The total transaction volume is estimated at $1,817,204,868 with 62 out of 65 properties reported. The average PPU was $132,398 and the average PPB was $50,204 in this transaction. Harrison Street believes this is the largest acquisition of student housing properties in the industry.

Scion Student Communities LP, a joint venture between Singapore foreign capital investor GIC and the Canada Pension Plan Investment Board, completed the acquisition of University House Communities Group, Inc. owned by InvenTrust in June of 2016. University House Communities Group, Inc. is a student housing ownership and management subsidiary wholly-owned by Maryland-based InvenTrust Properties Corporation. This portfolio acquisition included 4,890 units and 13,260 beds for a total estimated transaction volume of $1,400,000,000. Both parties handled the direct sale in-house. The average PPU was $286,299 and the average PPB was $105,581 for the 22 properties reported out of the 22 property portfolio. The InvenTrust portfolio is comprised of 18 stabilized student housing complexes and four properties under development. Scion has surpassed Education Realty Trust to become the third-largest student housing owner in the country with more than 38,000 beds after this acquisition.

There were three significant portfolio sales in 2016 consisting of twenty or more properties respectively. These portfolios, totaling over 100 individual assets and $3.65B representing 55% of all reported dollar volume for 2016. The total transactional volume accounted for 55% of the total national volume in 2016. Additionally, more than 22,000 units and 62,800 beds were sold which accounted for 40% of total national units sold and 45% of total national beds sold in 2016.


$1.4BVOLUME

4,890UNITS

13,260BEDS

22PROPERTIES

$1.8BVOLUME

14,149UNITS

38,562BEDS

65PROPERTIES

PORTFOLIO TRANSACTIONS

In partnership with Campus Advantage, Saban Real Estate has completed the acquisition of twenty student housing communities from American Campus Communities (ACC) in November of 2016. ACC is a leading developer, owner and manager of high-quality student housing. Saban Real Estate is one of the largest private owners and operators of real estate property in the United States while Campus Advantage is an Austin-based real estate firm and leader in student housing management, development, acquisition, and consulting services. The total transaction volume totaled $432,865,630 for 3,329 units and 11,026 beds (18 of 20 properties reported). The average PPU was $131,000 while the average PPB was $41,040 in this reported transaction. Saban and Campus Advantage collectively own and/or operate a portfolio of over 35,000 beds across 40 universities with this acquisition, making them the 4th largest owner/operator of off-campus, purpose-built student housing communities in the US.


$432.8MVOLUME

3,329UNITS

11,026BEDS

20PROPERTIES

National Sales $2,997,091,519.07 45%

HSRE/CCG $1,817,204,867.87 27%

Scion/InvenTrust $1,400,000,000.00 21%

CA/Saban/ACC $432,865,630.37 7%

$6,647,162,017.32 100%

National Sales 33,806 60%

HSRE/CCG 14,149 25%

Scion/InvenTrust 4,890 9%

CA/Saban/ACC 3,329 6%

56,174 100%

BEDSUNITSVOLUMENational Sales 77,295 55%

HSRE/CCG 38,562 28%

Scion/InvenTrust 13,260 9%

CA/Saban/ACC 11,026 8%

140,143 100%

PORTFOLIO TRANSACTION STATISTICS

Colliers International Student Housing Group

Travis PrinceSenior Managing DirectorTEL +1 813 767 [email protected]

Dorothy JackmanSenior Managing DirectorTEL +1 813 928 [email protected]

Victoria MarksSenior Financial Analyst TEL +1 727 298 [email protected]

Terrie RichterClient Services Specialist TEL +1 813 871 [email protected]

Sean BairdAssociateTEL +1 727 450 6158 [email protected]

Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence, and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our clients, our people and our communities.

15,000 68Countries

$2.6 billionUS in Annual Revenue

$2 billionSF Under Management

$105+ billionUS in Total Transaction Value

Professionals

DISCLAIMER

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).

©2017. All rights reserved.

Deepto MukherjeeResearch and Financial Analyst TEL +1 727 450 [email protected]

Prepared By:

Updated March 2015

www.studenthousingbrokers.com

Colliers International Debt & Equity Finance ServicesMichael StroberSenior Managing DirectorTEL +1 813 767 [email protected]

Don JenneweinSenior Managing DirectorTEL +1 813 928 [email protected]

Nathan LynchAssociateTEL +1 727 450 6158 [email protected]

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