Bridge Partners Enters Student Housing Market in San Luis Obispo
San Luis Obispo, CA December 16, 2013
In line with the firm’s strategy to grow its student housing portfolio, Bridge Partners recently acquired El Dorado Apartments, a 77-bed student housing community near The California Polytechnic State University at San Luis Obispo. In the past year, Bridge Partners has acquired multiple student housing properties near the University of Illinois, Michigan State University, and the University of CA, Davis. Nathan Blair from Arroyo & Co (now with HFF in San Francisco) represented Bridge Partners on this transaction.
El Dorado Apartments is a 60’s vintage apartment complex located approximately ½ mile southwest of the Cal Poly SLO campus. Major thoroughfares, including Foothill Blvd. and Highway 101 are easily accessed from the subject property. The unit mix features spacious floor plans including one, two and three bedroom units averaging 563 square feet per bedroom.
Bridge Partners completed the transaction with a private owner on an off-market bases within 60 days of contract execution. The investment was funded at its originally contracted price of $7.7M using JP Morgan Chase debt financing. Within the next year, Bridge Partners plans to engage Cal West Property Management to complete $7,000 per unit in immediate capital improvements, including exterior paint, new signage, landscaping upgrades along with a comprehensive improvement of unit interiors. The capital program will contribute to significant income growth in an undersupplied market; the property is currently 100% pre-leased for the 2013-14 academic year. Bridge Partners is actively seeking additional new investments that fit within its value add or other business plans, as indicated by the acquisition criteria shown to the left.
Founded in 1990, Bridge Partners specializes in the acquisition, renovation, and management of multifamily and hospitality properties nationwide. In the course of its history, Bridge Partners has completed over 200 transactions across 17 states and 50 domestic markets. Its existing portfolio features 7,000 units throughout 13 states.