Arrimus Capital Advisors, an affiliate of real estate private equity firm Arrimus Capital, has fully subscribed its first Delaware statutory trust offering after raising $44 million for ACA Stadium View Student Housing DST.
The ACA Stadium View Student Housing DST offering, designed for 1031 exchange buyers, is comprised of Stadium View, a Class A, 197-unit student housing property adjacent to Iowa State University in Ames, Iowa.
Arrimus Capital purchased the 518-bed property in December 2017. Stadium View is 99 percent occupied and more than 80 percent pre-leased for the 2018-2019 academic year.
“Student housing has a unique ability to outperform other property types in a down market, which is a compelling feature given where we are in the cycle,” said Chris Lee, a partner with Arrimus Capital. “Its recession resistance stems from the stable demand of the captive renter base associated with anchor universities. Student housing also benefits from short-term leases that allow for increases to keep pace with inflation similar to conventional multifamily properties.
The DI Wire previously reported that TCF 4 Stadium View Suites, a Reg D fund sponsored by ExchangeRight-affiliate Telos Capital, sold the property in December 2017 for nearly $38.7 million.
“The fundamentals for student housing investment, including the growth rates of the student demographic around the country, remain attractive,” Lee added. “Solid fundamentals combined with proven performance of the asset class have led to an infusion of institutional and international capital in the last few years, driving record transaction volume. We expect more institutional capital to enter the space to help expand and diversify their multifamily portfolios, which will help increase long-term valuations.”
Stadium View Suites was built as a luxury student housing development on the southeast side of Iowa State University, less than a 10-minute walk to Iowa State athletic facilities, retail, and restaurants. The total development consists of 197 units with a mix of two-, three-, and four-bedroom units.
Recently voted the #1 student housing property by ISU students, the property features five four-story buildings with each unit offering a private bathroom for each bedroom, full kitchens with granite countertops, fully furnished living rooms, in-unit washer/dryers, and free high-speed internet and cable service. Property amenities include a fitness center, clubhouse, study lounge and fire pit.
Iowa State, with an enrollment of more than 36,600 students, is the largest public, four-year university in Iowa and has experienced 40 percent enrollment growth over the past 10 years.
Arrimus Capital of Newport Beach, California specializes in value-add investments in supply constrained markets throughout the United States. The company focuses on acquiring, repositioning and developing student housing, multifamily and triple-net leased investment properties.