Tag: student housing

New Student Housing Projects Fill Up

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on New Student Housing Projects Fill Up

Students might fill up all the new beds that student housing developers are building this year. As the new school year began student housing properties were fully-occupied and posting solid rent growth.

That sets the student housing sector on a path for rent growth in the years ahead. Universities and college towns have successfully filled the extra tens of thousands of new student housing beds that were delivered in 2014 and year-to-date in 2015. Looking forward to next year, developers are planning about the same number of new beds as the market successfully absorbed this year.

“The sector remains strong and there is still opportunity for growth,” says Taylor Gunn, student housing analytics lead for data firm Axiometrics, Inc., based in Dallas. “We expect it to remain stable, if not better, than previous years.”

To read entire article visit National Real Estate Investor site.

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To discuss potential financing opportunities visit the Liberty Realty Capital website.

 

Demographic Trends Drive Investor Interest in Alternative Real Estate Assets

by Randybaconin Real EstateLeave a Comment on Demographic Trends Drive Investor Interest in Alternative Real Estate Assets

At a time when real estate investors still have concerns about the future performance of many traditional property types, including office, retail and multifamily, some have started to set aside capital for alternative assets. Such assets, including student housing, seniors housing and medical office buildings, among others, have broad demographic trends supporting their success, proved immune to the recession and offer higher yields than comparable properties in other sectors. As a result, interest in these types of assets is expected to keep growing.

Immediately after the downturn, active investors stuck primarily with the five core property types because they were wary of taking on any level of risk, notes Spencer Levy, executive managing director with CBRE Capital Markets. Yet the cap rates on the best multifamily, office and retail buildings have fallen so low lately that it has become difficult to achieve decent yields. At the same time, investors ranging from REITs to pension fund advisors to private equity groups still have to fulfill their capital allocations to commercial real estate, which is why they are increasingly eager to acquire more specialized properties.

Read the entire article at National Real Estate Investor here.

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