It looks as though Endeavor Real Estate Group in Austin is doing some recession-proofing, launching a division to specialize in student housing.
And it won’t be starting with the hometown University of Texas at Austin.
Jake Newman, an Endeavor principal, will lead the new unit as it gets started with a project at Texas Christian University in Fort Worth, the Austin Business Journal reported.
Endeavor is known for the development and management of a portfolio that runs the gamut from multifamily and office to retail and major mixed-use projects. In Austin, it is the developer behind The Domain mixed-use project and Saltillo residential complex, and is in planning and pre-development for the Austin American-Statesman site on South Congress Avenue, which faces a number of hurdles.
Student housing is a growing — and increasingly upscale — segment of residential development. It could be especially lucrative in Texas, where numerous private colleges and universities operate alongside campuses of the state’s six public systems of higher education, a roster that includes nearly 40 campuses among the University of Texas, Texas A&M, Texas State, Texas Tech, North Texas and the University of Houston.
“Given the strong macro fundamentals of the sector, we look forward to deploying our expertise and capital into student housing, which we believe offers yet another diversified investment option to our investors,” said Jamil Alam, an Endeavor managing principal.
Endeavor got the TCU project after responding to a request for proposals from the school, which sought an entity to design, build, finance, maintain and operate assets on its campus and along West Berry Street on the campus’ southern edge.
Endeavor’s prior experience in student housing has included a 233-unit dormitory at Texas State University in San Marcos. As an Austin-based business, it’s also in a prime spot for the asset class. The move to establish a formal unit for such work comes as the University of Texas looks to add about 4,000 beds in the coming years.
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