Pierce Education Properties has bought The Madison, a 540-bed community in Ames, Iowa, serving students at Iowa State University, according to Student Housing Business. Regions Bank provided financing for the acquisition.
The property was bought out of foreclosure, being previously subject to a $16.8 million CMBS loan funded by Wells Fargo Bank and Rialto Capital Advisors, Yardi Matrix data shows. The asset previously traded in 2015 for $18.3 million, according to the same data provider.
Completed in 2001, the community encompasses 13 buildings and 144 units with a mix of three- and four-bedroom floorplans, averaging 1,258 square feet, equipped with walk-in closets, in-unit washers and dryers, as well as private balconies and patios available. Community amenities feature a sand volleyball court, basketball courts, clubhouse, fitness center, swimming pool, picnic area, coffee bar, computer bar and dog park.
Located at 4912 Mortensen Road, The Madison is within 2.5 miles of Iowa State University, the Southwest Recreation Center and Ames/ISU Arena. The Jack Trice Stadium and Hilton Coliseum are within 3 miles of the property.
According to the latest Yardi Matrix student housing report, Iowa State University registered a 24.1 percent annual prelease growth, which put it among the top 20. There are currently 16 properties totaling 7,366 rooms in the market, with no developments underway.
While development is stalling, deals are going ahead in the market. Last November, Centurion Property Group landed $18 million in acquisition financing for Aspen Ames, a 422-bedroom community in the area.