$50 million student housing acquisition
In its newly-formed joint venture BMOC (Best Management Onward Campus) and Calidus Holdings announced today that it made its first purchase of 2,016 beds at four public universities in Texas, Arkansas, Kansas, and Alabama in a $50 million transaction. The deal, which closed at the end of December, is one of the largest in number of beds purchased by a non-REIT in 2013.
The joint venture creates an alliance between a nationwide leader in student housing operations, BMOC, and a premier investor and operator of U.S.-based commercial real estate, Calidus Holdings, with an institutional equity partner. In an effort to take advantage of the pent-up demand for student housing, the joint venture aims to acquire purpose-built off-campus student housing product, well below replacement cost at four-year public universities nationwide. "We are not only focused on D-1 markets, but very excited about working with universities, parents, and students in growing D-2 and D-3 markets," says William J. Levy, CPM, BMOC founder and Chief Executive Officer, and manager of the day-to-day operations of the new properties. Calidus Holdings will provide the asset management services.
There are approximately three million on-campus beds and four million purpose built, off-campus beds in the US and over 21 million students which explains why purpose built student housing is a growing sector of the market. In addition to the $50 million deal of 2,016 beds that just closed, the venture has an additional five properties under contract comprised of roughly 3,000 beds in the Southeast; these are scheduled to close in the first quarter of this year. "We focus tirelessly on harvesting off-market opportunities to acquire assets at great value with consistent cash flow and strong overall yield to our investors," says Benjamin Shibe Macfarland III, Chief Investment Officer with Calidus Holdings.
About BMOC, Inc. (Best Management Onward Campus), is a nationwide leader in student housing investments and other defined real estate assets. BMOC provides a large range of services for investors and developers including property management, brokerage and consulting on such issues as financial feasibility analysis and zoning and allowable density to property tax and assessment analysis. For over 35 years, BMOC founder and CEO, William J. Levy, CPM, has managed over 175,000 student leases nationwide, and has handled and developed portfolios in excess of $4 billion of value. Mr. Levy was recently listed in the book "Successful Property Managers" published by Wise Media Group. For more information, please visit www.bmocinc.com.
Calidus Holdings is a premier investor and operator of U.S.-based commercial real estate assets working with some of the most prestigious family offices in Palm Beach and U.S. institutional investors. Calidus and its principals have been operating in the industry for more than 30 years with strong ties to Wall Street. They have owned and managed a $300 million portfolio in excess of 2.5 million square feet of primarily office and self-storage assets throughout the Southeast. The Calidus team is well established to identify, underwrite, and manage real estate assets in its targeted markets and report to the standards of large financial institutions.