Some folks who read my posts say I spend too much time talking about campus-area multi-family investments. Well, that's because I believe they are among the strongest assets available. But once more, don't take it from me . . . look at what someone else has to say.
In East Lansing and Mount Pleasant, both in Michigan, a joint venture is wrapping up the purchase of five off-campus student housing apartment complexes near Michigan State University and Central Michigan University. The Pierce Co., based in San Diego, Calif., and the Fidelity Real Estate Group, a division of Fidelity Investments, bought the 3,516-unit properties for $130 million.
Fred Pierce, chief executive officer of the acquiring partnership, told Globe Street, a real estate news service, that the recent purchase is part of a $500-million national student housing acquisition program the company will implement in the next three years, mostly properties in the Midwest and Texas.
More importantly, listen to what he follows up with. "We believe that the Midwest's university markets have solid fundamentals, but yet are not on the radar screen the way the growth markets are," said Pierce. "Even if the local economy isn't doing well, these university markets are stable," he says. He adds that there is a growing national interest by investors into student housing. "There's a greater amount of institutional capital and investors than there are student housing operating companies so there's a real opportunity to outperform multifamily," Pierce notes."
Now . . . where have you heard all this before? Oh that's RIGHT! Right HERE in the pages of "Cash On Cash!" LOL
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