The ASB Real Estate Investments firm is seeking a buyer for the 2040 Lofts on the 2000 block of W. Wisconsin Ave., estimated at $33.9 million, as part of six properties bundled in a sale.
A representative at ASB was unable to provide any details about a sale or any potential buyers, due to company policy, but did confirm that this type of sale is common among real estate investment firms.
“Due to value increases across our residential portfolio over the last few years, we are looking to rebalance our multifamily/student housing concentration to bring it back in line with our long-term target weighting for residential assets,” representatives from ASB said in a press release to the real estate service firm CBRE.
CBRE, the real-estate developer, is in charge of coordinating the sale of ASB’s apartment package. ASB reached out to CBRE and its National Student Housing Group to be the exclusive agent for the sale of the 2040 Lofts and the other five student housing buildings.
According to the press release from CBRE, the package totals 1,374 units and 3,057 beds in four states. The other complexes included in the sale are affiliated with the campuses of the University of South Florida, Illinois Institute of Art, University of Illinois, Chicago and Indiana University.
The 2040 Lofts is the third largest building in the package in terms of rentable space, but has the lowest occupancy rate with just 80 percent of its rooms occupied. This rate is substantially less than the 93.8 percent occupancy average amongst the six buildings. The 2040 Lofts is also the second-oldest building in the package, but was renovated most recently.
Jaclyn Fitts, Director with CBRE said in the press release that this package ASB is offering could be a beneficial one for upstart equity groups who are looking to get involved in student housing development.
“As many new equity groups are looking to build a platform in the student housing space, current owners are looking to take advantage of this unprecedented demand by marketing portfolio offerings,” Fitts said. “Traditionally, student housing has been a bifurcated segment of the industry, and groups have had a difficult time building a sizable portfolio. The portfolio offerings currently on the market should help entrants looking to build a platform.”
