SmartStop Asset Management LLC, a sponsor of non-traded direct investment offerings, has sold two Class A student housing properties for $140 million on behalf of the Power 5 Conference Student Housing I DST, a Delaware statutory trust offering sponsored by the company.
The properties include YOUnion@Ann Arbor, located three blocks from the University of Michigan, and YOUnion@Columbia, located two blocks from the University of South Carolina.
According to a filing with the Securities and Exchange Commission, the private placement offering launched in March 2018 and sought to raise $59.2 million. The company said that the sale resulted in a total return of 141 percent to its DST investors, which was calculated based on the aggregate amount of original capital invested in the property.
“We acquired both properties with the intention to implement modest common area upgrades and rebrand the communities to YOUnion Student Living,” said John Strockis, chief investment officer. “Our team made value-add upgrades that included high-speed Wi-Fi, security cameras, Amazon Hub Lockers and new study rooms in common areas that greatly appealed to our resident base. Both communities averaged 99 percent occupancy over the hold period. The result of these upgrades and rebranding contributed to the 141 percent total return to our investors.”
The 97-unit, 345-bed YOUnion@Ann Arbor property is located at 411 E. Washington St. in Ann Arbor, Michigan. The 400-unit, 760-bed YOUnion@Columbia property is located at 1000 Whaley St. in Columbia, South Carolina.
The properties were sold to an institutional investor as a portfolio.
SmartStop Asset Management and its affiliates have transacted more than $5.5 billion in office, industrial, retail, self storage, and senior and student housing throughout North America.