Invesco Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased a 13-story, 384-unit (833-bed) student housing facility located at Arizona State University.
Developed in 2017, the property is 100 percent leased for the current academic year and a less than five-minute walk to campus.
While the purchase price was not disclosed, The DI Wire reported on Monday that the REIT agreed to pay $163 million for the property, sell the underlying property to Safehold Inc. for $54 million, and then enter into a 104-year ground lease with Safehold.
“We are excited to acquire a high quality, 100 percent occupied student housing property at one of the nation’s largest universities, and in a high-growth market like Tempe,” said R. Scott Dennis, president and chief executive officer. “There continues to be strong demand for the student housing sector, and we are seeing an increase in undergraduate enrollment at top universities, resulting in student housing occupancy reaching pre-COVID levels.”
This is the second student housing investment for Invesco REIT, bringing its gross assets to more than $700 million.
Invesco Real Estate Income Trust invests in stabilized commercial real estate in the United States and intends to diversify globally. The REIT launched its public offering in late May 2021, which consists of up to $2.4 billion in shares of common stock and up to $600 million through the distribution reinvestment plan. It has raised $58.5 million in the primary offering, and as of November 30, 2021, had an aggregate NAV of $288 million.
Invesco REIT initially commenced operations in September 2020 via a $400 million private placement offering of Class N shares and sold nearly 6.3 million shares for approximately $164.3 million.