A joint venture of JMG Realty of Atlanta and Trident Partners ofrecently purchased North 38, a 228-unit, 816-bed student housing complex in Harrisonburg, Va. for $32.8 million. The property is located near James Madison University, which has an enrollment of 18,000.
The complex was 94.6% occupied at the time of the sale. The sales price was the equivalent of $143,640 per unit or $40,135 per bed.
The sellers were a joint venture of Wood Partners and Franklin Holdings, both based in Charlotte, N.C., and Key Bank, according to theInstitutional Property Advisors (IPA), a Marcus & Millichap company.
Peter Katz, a senior director in the Phoenix office of IPA and Henry Schuldinger, an associate in the Washington, D.C. office of Marcus & Millichap, represented the sellers. Katz also represented the buyer.
Completed in 2009, the complex features a swimming pool, fitness room, tanning beds, spa, game room with billiards, computer lounge, basketball courts, barbecue grills, and a clubroom.
“North 38 offers the new ownership solid, unlevered returns over the short- and long-term, coupled with layering in acquisition financing close to 80% [loan-to-value], this property will deliver strong double-digit leveraged returns,” says Katz. The complex uses green technology and earned an Energy Star certification, he adds.
The 19-acre complex has 816 bedrooms and large units averaging 1,312 feet. It includes 96 three-bedroom units and 132 four-bedroom units that are furnished and leased by the bedroom. Most utilities, including cable TV, are included in the rent. A weekend shuttle bus that takes students to entertainment and shopping destinations in Harrisonburg.