NB Private Capital, a real estate investment firm and sponsor of private placement offerings, has sold a 6.1-acre parcel of land known as University Downs in Orem, Utah near Utah Valley University for $10.5 million.
The company said that it purchased the property in October 2015 for $5.5 million with the intent to capitalize on the university’s rapidly expanding enrollment. Utah Valley University is the largest public university in the state of Utah and experienced 7.1 percent enrollment growth over the last fall semester.
“This sale highlights our core strengths as specialists in student housing,” said NB Private Capital CEO Blake Wettengel. “Investment capital has been chasing Tier 1 schools for the last couple of years while we have been focusing on Tier 2 and 3 markets. The very same macro-economic drivers that made the big name schools the targets last year will exist in markets like Orem next year and the years beyond. We believe our investors will continue to benefit from this trend as we execute our strategy ahead of the coming swell of institutional and international attention.”
University Downs’ development site is located across from Utah Valley University directly off the Interstate 15 freeway and the Orem Frontrunner Commuter rail. The land will be the future site of one of the most densely populated housing developments in Utah.
“University Downs ticked all the boxes: a fast growing school, affordable education and campus adjacent,” NB Private Capital founder and president Brian Nelson said. “With rampant growth in construction costs in Utah County and several new projects coming on-line, we felt the most optimal play to maximize our investors’ return, while mitigating risk, was to sell the property while the market is flourishing.”
NB Private Capital LLC, an investment firm founded by Brian Nelson – previously of Nelson Brothers Professional Real Estate – specializes in the acquisition, financing, and ownership of student housing properties. The company currently manages more than $600 million in multifamily housing real estate.