Austin’s student housing scene is growing up, and Entrada Partners wants in.
The Dallas-based firm acquired a 243-bed student housing complex in West Campus, adding to its portfolio in one of the nation’s most active student housing submarkets, the Austin Business Journal reported.
The firm purchased 24 Longview, a 70-unit property at 2401 Longview Street, just west of the University of Texas at Austin campus. The development includes one- to four-bedroom units and was built in 2012. It’s Entrada’s second student housing acquisition and its first in Texas.
The firm did not disclose the purchase price, but the property’s taxable value is $20.4 million, or $291,000 per unit. The seller, who wasn’t identified, was represented by Kent Myers and Jordan Featherston of Institutional Property Advisors. JLL Capital Markets arranged financing for the deal.
Entrada plans to renovate the property with updated interiors and amenity spaces, including a lounge, study rooms and leasing office, said managing director Michael DiSimone.
The Preiss Company will manage the property, while Forge Constructors will handle renovations.
The deal comes as West Campus faces a generational turnover of inventory.
Older assets are being repositioned following a wave of student housing development from 2010 to 2020. Developers and investors are increasingly focused on value-add opportunities rather than ground-up development, particularly as land and construction costs rise. Investors updating older student housing assets is a national trend.
Entrada previously acquired the distressed debt on a 199-bed student housing property in Utah, its first foray into the sector.
UT Austin ranks fourth in the nation for off-campus student housing supply, with nearly 24,000 beds, according to Yardi Matrix. That puts it behind only Texas A&M, Florida State and the University of Florida in off-campus inventory.
Nationally, major real estate players like Harrison Street Capital Partners and Greystar are putting significant investment into student housing.
— Judah Duke
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