Inland Private Capital Corp. and Core Spaces have formed a joint venture targeting ground-up and substantially-complete off-campus purpose-built student housing opportunities located at leading, top-tier universities across the United States.
The scale of the JV remains open ended. However, to date it has successfully lined up a pipeline of approximately $500 million in transactions that have either closed or are in the process of closing pending the completion of due diligence, according to the companies. IPC and Core Spaces declined to release more details of the projects that are part of the joint venture.
The relationship marks the beginning phase of IPC’s strategic plan to expand its student housing footprint. The privately-held alternative investment management firm currently has 3,800 student housing beds near seven universities. One of its holdings is The Haven of Athens, which was acquired in September 2021 and is located near the University of Georgia in Athens. In June 2018, IPC sold The Retreat at Orlando, a 221-unit, 894-bed student housing community in Orlando, Fla., which served students at the University of Central Florida. IPC had acquired the 37-acre property in 2015 before selling it to Preferred Campus Communities on behalf of one of its 1031 investment programs.
Keith Lampi, IPC president & COO, said in a prepared statement the strategic relationship will provide the company’s platform institutional access to best-in-class student housing opportunities. He said student housing is an investment category that has historically demonstrated predictable and stable performance, even during time of economic volatility, including the COVID-19 pandemic.
Marc Lifshin, co-founder & CEO of Core Spaces, also noted the U.S. student housing sector has shown incredible resilience and robust fundamentals, particularly at leading universities where enrollments are growing. He said Core Spaces’ pipeline is strong and they are excited about the opportunities ahead and bringing the company’s experience in investing in and developing high-quality purpose-built student housing to the partnership with IPC.
Core Spaces Portfolio
The announcement comes two weeks after Core Spaces formed a joint venture with Tom Winkopp Development to create one of the largest privately-owned, off-campus student developments near Clemson University. The project, with development costs estimated at more than $200 million, will eventually have 4,000 beds in a variety of housing styles built around a 140-acre, walkable student village in Seneca, S.C. The project will expand an existing student housing development known as The Pier that has been built over a 10-year period by Tom Winkopp Development. The Pier, located about 2.5 miles from the Clemson University campus, currently has 1,400 beds. The first phase of the new development will feature 900 beds and is expected to deliver by August 2024. Core Spaces plans to introduce nine-bedroom residences to the mix of housing styles offered at the site, which now ranges from tiny houses to one- to six-bedroom cottage-style residences. Plans also include renovating an existing clubhouse and constructing a new 12,000-square-foot building with a coffee bar, study rooms and lounges. The master plan calls for adding a walkable town square with restaurants and retail to the student village.
Core Spaces currently owns and/or manages 37 properties nationwide, totaling more than 16,000 units and beds. It has a pipeline of more than 40,000 units and beds in various stages of development and acquisition. Joe Gatto, managing director of acquisitions at Core Spaces, recently told Multi-Housing News that in any given year the company acquires about $1 billion in student housing and develops about $1 billion in student housing. The expansion is aided by a joint venture announced in February 2021 with two unidentified global real estate investors that committed to acquiring more than $1 billion of assets with Core Spaces managing the properties.
In April, Core Spaces acquired Ulake, a 401-bed student community in Tampa, Fla., serving students at the University of South Florida, for $38.8 million from FPA Multifamily. Completed in 1980, the community has 17 buildings and 300 recently renovated units with one- and two-bedroom apartments.