Campus Living Villages Sells Illinois Student Housing for $110M

Illini Tower. Image courtesy of JLL Capital Markets A joint venture between IGIS Asset Management…

Illini Tower. Image courtesy of JLL Capital Markets

A joint venture between IGIS Asset Management and Timberline Real Estate Ventures has acquired Illini Tower, a 725-bed student community in Champaign, Ill., for $109.8 million, Champaign County records show. Keb Hana Bank provided $71.4 million in acquisition financing, according to the same data provider. JLL Capital Markets brokered the transaction on behalf of the seller, Campus Living Villages, and represented the borrower.

Renovated in 2018, Illini Tower encompasses 207 units with a mix of studio to four-bedroom apartments, varying from 465 to 860 square feet with fully equipped kitchens and kitchenettes, high-speed internet and walk-in showers. Community amenities include a fitness center, theatre and game room, private study rooms and an on-site dining hall.

Located at 409 E. Chalmers St., within the Campustown neighborhood, the community is within walking distance of the University of Illinois Urbana-Champaign, the Activities and Recreation Center, as well as the University of Illinois Memorial Stadium. Numerous dining and retail options, including Illini Plaza and Harvest Market are 1.5 miles away from the property.

Senior Directors Scott Clifton and Stewart Hayes of JLL Capital Markets represented the seller, while Senior Managing Director Doug Opalka, alongside Directors Jackson Finch and Jayme Nelson, were part of the Debt Advisory team.

Maintaining strong student market fundamentals

The University of Illinois Urbana-Champaign remains one of the top 20 universities with the highest annual growth in percentage preleased, registering a 27.5 percent growth, as of April, a Yardi Matrix report shows. A total of 44 properties and some 14,478 bedrooms are serving the students at the university, and one more planned property will add almost 1,180 units to the existing inventory, according to Yardi Matrix data.

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The sales volume is showing strong market fundamentals, as well. In April, Fairlawn Capital paid $150 million for a 50-property student housing portfolio, which was the largest portfolio sale in Champaign County.