In their first student housing acquisition, Madison International Realty has purchased an 80 percent equity interest in two student housing communities in Florida for $30 million.
The New York-based private equity real estate secondaries firm acquired the interests in the Class A communities, located in Gainesville and Tallahassee, from The Collier Companies, the third largest student housing operator in the US.
The properties, The Enclave and Seminole Grand, have a total of 898 units. The Enclave is a 412-unit, 13-building student housing apartment community adjacent to the University of Florida in Gainesville that is 98 percent occupied. Seminole Grand, which underwent a $7 million renovation in 2008, is a 486-unit, 36-building student housing community near Florida State University in Tallahassee that is 96 percent occupied.
“This is the first housing deal we have done,” said Madison International's founder and president Ronald Dickerman in a statement. “These are communities located in close proximity to several of the largest universities. We probably wouldn't have done the deal if they were three or four miles away from small college campuses.”
Collier is maintaining the remaining 20 percent stake in the properties. Dickerman said that the acquisition enabled Collier “to monetise” some of its equity in the deal.