A joint venture organized by Alex. Brown Realty, Inc. (ABR) and Asset Campus Housing (ACH) has acquired Dakota Ranch, a student housing project in San Marcos, Texas. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $5.9 million in the joint venture.
Dakota Ranch is a 316-bed student housing property located near the main campus of Texas State University in San Marcos, Texas. Purpose-built as student housing in 2003, the property contains 188 apartment units located within 10 three-story wood framed buildings situated on 17 acres. At closing, the property was 99% leased for the 2015-2016 school year.
The property will immediately undergo extensive capital improvements focused on strategic interior and exterior upgrades to refresh the property and correct deferred maintenance. These improvements are expected to drive higher rents for the 2016-2017 school year.
“This was an off-market transaction negotiated by ACH,” commented Tom Burton, ABR’s chief investment officer. “We acquired the asset at an attractive basis and anticipate increased NOI and asset value with the successful implementation of the business plan,” added Burton. Dakota Ranch represents the fifth joint venture between ABR and ACH.
“ACH has proven to be a strong joint venture partner and we are pleased to be venturing another project with them,” stated John Prugh, president and CEO of ABR.