Blue Vista Capital Management has bought two properties valued at around $48 million through its joint venture fund, the Place/BV Student Housing Fund, targeting students in Mississippi and Texas.
The $280 million fund, launched with Atlanta, Georgia-based developer Place Properties last year, bought Lafayette Place, close to the University of Mississippi, and Parkway Place, near Texas A&M University in College Station. Both developments will open this summer, the firm said in a statement.
The Place/BV Student Housing Fund targets properties and development near universities with more than 5,000 students, which are leased “by-the-bed” and typically have a ratio of one bedroom to one bathroom.
In January, the firms told PERE they were setting setting aside $50 million of the JV fund’s equity to purchase “pre-distressed, distressed and bank foreclosed” student accommodation. The fund will target over-leveraged owners who are about to, or have had, properties repossessed by banks.
Blue Vista has more than $550 million in capital under management. Place Properties has developed more than $800 million of student housing properties since 1996 and currently manages more than 17,000 beds.