San Marcos, Texas — Alex. Brown Realty Inc. (ABR) and Asset Campus Housing have purchased a student housing project near the main campus of Texas State University in San Marcos. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $4.6 million in the joint venture.
Currently known as University Springs, the 488-bed student housing property will be rebranded as The Reserve at West Avenue and undergo capital improvements focused on interior and exterior upgrades. Built in 1998, the property’s 152 units’ floor plans include two-, three- and four-bedroom units, and offer student residents an array of amenities. Asset Campus is a repeat partner and property manager with ABR and will serve as property manager of the asset.
The acquisition was financed with a first mortgage loan from Amegy Bank. At closing, the property was 98 percent pre-leased for the 2015-2016 academic school year.
“With the value-add improvements and close proximity to campus, we anticipate positive results for our investors,” says Tom Burton, CIO of ABR.