SCI Buys 10-Building Student Apartment Complex Near Oklahoma State
- Jun 24, 2008
SCI Real Estate Investments L.L.C. has purchased Campus Park, a student apartment community in Stillwater, Okla., from Internacional Realty Group. The property consists 10 apartment buildings totaling 138 units (384 beds), plus a clubhouse, on 19 acres, some of which is available for future development. The community also features a pool with spa, volleyball and basketball courts, a computer room and private study/conference rooms. It traded hands for an undisclosed price. Although he declined to disclose the purchase price, Scott Derrick, SCI’s chief investment officer, told CPN that the property traded hands at an 8.2 cap rate. The property is six blocks from the Oklahoma State University campus and sits along the Campus Transit System. With the university’s enrollment estimated at more than 20,000, Stillwater reportedly has a strong demand for off-campus student housing. Derrick told CPN that Campus Park was full during the school year just ended, and that SCI has plans to expand the property with 165 additional beds. The existing buildings will get new roofs, as well as various cosmetic improvements. Derrick said SCI, though historically focused on multi-family and retail, and to a lesser extent on medical office, is moving more into student housing, particularly in the Sun Belt. The company is nearly finished with starting up an opportunistic student housing fund and is also chasing a foreclosed student housing portfolio of five properties worth roughly $50 million. “We’re looking for opportunistic deals in student housing that have a value-added component to them,” Derrick explained. With current credit conditions, he added, there often just isn’t much competition on the buying side. “The buyer pool has just shut way down.” SCI’s student housing portfolio now includes 14 properties serving 12 major universities and totaling about 10,000 beds.