West Virginia Student Apartment’s Road to Stabilization
By Erika Murphy | Mid-Atlantic | April 11, 2014
MORGANTOWN, WV—We reported earlier this week that West Run apartments, an off-campus student housing building here, traded at an at undisclosed price.Colliers International Student Housing group has now announced it closed the sale of the 322-unit, 994-bed facility and it traded $32 million. Colliers International’sTravis Prince and Dorothy Jackman handled the transaction.
Peak Property Group from Columbus, Ohio purchased the property, located at 500 Koehler Dr., from Bridge Partners, a real estate private equity investment firm headquartered near San Francisco, Calif.
Bridge Partners acquired the note secured by West Run Apartments in December 2010, Luca Mangini, Vice President of Acquisitions at the company, explained. It was able to take control of the property in early 2011 and invested over $4,000 per unit to reposition it. It then tapped Asset Campus Housing to help it stabilize West Run, “and improved net operating income by 25 percent from 2011 to 2013.”
Now it belongs to Peak Property, which recently entered the student housing market. It is providing “great cash yields out of the gate,” Prince says in a prepared statement.
“There continues to be a high level of interest in the student sector, specifically from buyers looking for cash yield,” he also says.