Virtus Launches Student Housing Investment Fund

The new investment fund will acquire more than $300 million in student housing properties over the next two years.

Austin, Texas — Private equity firm Virtus Real Estate Capital has launched its newest fund. Virtus Student Housing LP aims to purchase more than $300 million in student housing properties in 2011 and 2012. The fund will deploy between $100 million and $150 million in equity, preferred equity and mezzanine investments. It is targeting collegiate markets in high-density urban areas, near second-tier universities and near major community colleges throughout the United States.

The company is on its way to closing the fund’s first investment. The property contains more than 700 beds and is located near a major state university in the Southeastern United States. Virtus is under contract to acquire the community for approximately $30 million in a deal that will close by July.

— Coleman Wood

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