The Michaels Organization Announces Sale of Three Student Living Assets
CAMDEN, N.J., January 7, 2022 (Newswire.com) - The Michaels Organization, a national leader in residential real estate, with full-service capabilities in development, property management, construction, and investment, announced today that it has completed the sale of three purpose-built student living properties, two in New York, and one in Texas.
"The strategic sales of these high quality, financially successful assets will continue to fuel future growth of Michaels' student living and market-rate developments, whilst at the same time delivering attractive returns to our investment and capital partners who have supported us in these deals," said Michaels Executive Vice President Michael Flanagan.
The two New York sales include 505 on Walnut, an off-campus community located adjacent to Syracuse University, which Michaels completed in 2018. The 126 unit/363-bed property features modern layouts and upscale amenities, including Smart Home Technology. The property, which is currently 100% pre-leased for Fall 2022, will continue to be managed by The Michaels Organization. A New York-based student housing fund purchased 505 on Walnut.
Harrison Street, a leading investment management firm exclusively focused on alternative real assets and The Michaels Organization have recapitalized APEX, one of the largest off-campus student housing projects in New York. Positioned directly across the street from the Rochester Institute of Technology, a leading STEM-focused university in Rochester, NY, the property offers an innovative community with modern apartments in one- to five-bedroom layouts. The property features abundant community spaces and Smart Home Technology, an Esports arena, and electric car charging stations. The transaction, which was completed in December, is one of the largest single-asset student housing transactions completed in 2021. The Michaels Organization will continue to act as property manager for APEX.
Michaels also sold Hill Country Place, a 228 unit/696 bed student housing community located off-campus in close proximity to the University of Texas- San Antonio. Michaels acquired the property in 2017, as a value-add proposition, repositioning the asset, which at the time of sale was 97.4% leased.
Due to strong execution, Michaels was able to successfully sell all three of these properties at a price that exceeded initial underwritten returns.
The Michaels Organization has been developing purpose-built student housing communities since 2011 in strategic markets across the country and has a strong, existing pipeline of student and market rate developments for delivery in 2022 and beyond.
About The Michaels Organization: The Michaels Organization is a national leader in residential real estate, offering full-service capabilities in development, property management, construction, and investment management. Serving more than 175,000 residents in more than 440 communities across 37 states, the District of Columbia, and the U.S. Virgin Islands, Michaels is committed to crafting housing solutions that jumpstart education, civic engagement and neighborhood prosperity and to creating Communities That Lift Lives.
Media Contact: Laura Zaner, 856-988-5983; lzaner@tmo.com
Source: The Michaels Organization
