Fairlawn Capital Pays $150M for Illinois Student Housing Portfolio

107 E. Springfield Ave. Fairlawn Capital has acquired a more than 50-property student housing portfolio…

107 E. Springfield Ave.

Fairlawn Capital has acquired a more than 50-property student housing portfolio in Champaign, Ill., for $150 million. Campus Property Management sold the assets serving the students at the University of Illinois Urbana-Champaign. Senior Managing Director of Investments Scott Harris and Senior Associate Bryan Kunze of Marcus & Millichap represented both parties in the transaction, which closed in four tranches.

The sale comprises nearly 1,100 units and 863,961 square feet and is the highest by price and number of bedrooms in Champaign County. The assets vary from SFR homes to student housing communities, with the newest constructed in 2019 and the oldest one being over 50 years old.

According to the News-Gazette, the largest properties traded in the portfolio include 408 E. Healey St. and 107 E. Springfield Ave., two 64-unit buildings with one-, two-, three- and four-bedroom apartments, averaging 834 and 716 square feet. The new owner plans to upgrade the units and add amenities to enhance the communities.

The University of Illinois Urbana-Champaign offers students various green areas, such as the Illinois Field, Atkins Tennis Center and University of Illinois Memorial Stadium. Several retail and dining options, including Harvest Market and Illini Plaza, are next to the campus as well.

The institution was one of the top 20 universities with the most year-over-year growth in percentage preleased, up 24.5 percent as of November 2021. At the same time, preleasing was at 32.9 percent, according to a Yardi Matrix report. Currently, there are 44 student-dedicated properties, with more than 50 units totaling roughly 14,478 rooms, Yardi Matrix data shows. At the end of last year, Ascott Residence Trust paid $83.3 million for Seven07, another 548-bed community in the area.

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