Preferred Apartment Communities, Inc. announced that it has entered into a purchase and sale agreement to sell its student housing portfolio to TPG Real Estate Partners (TREP) for $478.7 million.
The student housing portfolio includes eight, high-quality student housing communities located in Arizona, Florida, Georgia, North Carolina, and Texas. The communities include more than 6,000 beds with a wide range of indoor and outdoor amenities.
“This transaction represents a scaled entry for TPG Real Estate into the U.S. student housing sector and an extension of our student housing initiatives in Europe. We believe the assets in this portfolio will benefit from their adjacency to high-quality academic institutions that are well positioned to weather the challenges resulting from the Covid-19 pandemic,” said Ty Newell, Principal at TREP. “
”We look forward to closing the sale of our student housing portfolio to TPG Real Estate in the coming months,” said Joel Murphy, Preferred Apartment Communities’ President and Chief Executive Officer. “This is consistent with our previously stated objectives to exit the student housing space, simplify our focus to our core Sunbelt multifamily business, and improve our balance sheet. TPG Real Estate has demonstrated their commitment to the transaction and their sector experience throughout the process, and both groups worked well together during the due diligence phase.”
The transaction is expected to close in the fourth quarter of 2020 and is subject to customary closing conditions. The Portfolio was marketed for sale by CBRE.
The communities to be sold include:
- NxNW, a 679-bed student housing community located in Tallahassee, Florida
- Knightshade, an 894-bed student housing community located in Orlando, Florida
- The Tradition, an 808-bed student housing community located in College Station, Texas
- The Bloc, a 556-bed student housing community located in Lubbock, Texas
- Ursa, an 840-bed student housing community located in Waco, Texas
- SoL, a 639-bed student housing community located in Tempe, Arizona
- Stadium Village, a 792-bed student housing community located in Kennesaw, Georgia near Atlanta, Georgia
- Rush, an 887-bed student housing community located in Charlotte, North Carolina
