Student housing is an emerging asset. Hence, globally, a lot of investors across the board are looking to increase their foothold in the sector. Institutional investors, foreign equity and private capital buyers have flooded the sector of since the onset of the Covid-19 pandemic, in order to leverage the higher yields offered by this asset class, in comparison to more traditional areas of investment. There are many companies like Nelson Partners through whom one can invest in premium student housing properties.
Covid-19 pandemic took the whole world by storm, and had a huge impact on almost all sectors of the society. However, the situation is gradually improving today. The return of students to in-person learning at universities and colleges is particularly piquing the investor demand for student housing. This demand is been witnessed both from parties commonly investing in these sectors, as well as various new entrants. The aspect of students returning to the campus is a key part of the draw. As the lockdowns first hit, many investors were concerned that the demand for student housing will plummet due to remote learning. But that didn’t happen. In fact, rent collections at most places remained consistent as most college and university students opt to live in student housing while taking their classes online.
Owing to how compressed multi-housing cap rates have become, most investors are now focusing on yield. In the current landscape, an increasing number of multi-housing investors looking to buy into the student housing market. Private capital essentially took lead in terms of transaction volumes last year, when the interest in the United States housing market from institutional and foreign investors slowed down. However, this trend is reversing now, as foreign and institutional investors returning in force. Moreover, a number of investment firms that are new to the student housing sector are also becoming present in this bidding process. Many of these new entrants are, in fact, conventional multi-housing investors. These new entrants even include experienced commercial real estate investors who have historically focused on other types of properties but are now seeing student housing as an opportunity to invest due to how resilient student housing has proven to be historically. The financing markets are improving dramatically for student housing as well. The debt liquidity in the sector extremely healthy and is witnessing improvements on a regular basis.
To invest in student housing projects, one can always get in touch with companies like Nelson Partners. They operate as a student housing developer. This company develops, acquires, invests, and manages student housing properties. They strive to provide exceptional service and personal care from an experienced team of professionals, and perform high-level on-going due diligence on every property they are involved in. They have over 1,200 investors in their 1031 exchange programs. Detailed insights into the services offered by the company can be easily found at their official website.