BLOOMINGTON, IN - Alex. Brown Realty and Asset Campus Housing announce the acquisition of The Fields, a student housing project near the main campus of Indiana University in Bloomington, Indiana. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $11.7 million in the joint venture. The acquisition was financed with a first mortgage loan from Texas Capital Bank, N.A.
Built as a conventional apartment community between 1997 and 2001, the property was recently converted to a 537-bed student housing community by the prior owner and includes a resort-style pool, lap pool, two 24-hour fitness centers, a business and media center, a 10-acre park overlooking scenic ponds, and The Clubhouse--an elegantly renovated 1940’s barn with 24’ rafted ceilings.
“The Bloomington student housing market continues to be a strong performer,” stated Stephen Mitchell, EVP with Asset Campus Housing, noting the University’s steady enrollment growth and barriers to new supply in the market. “We believe The Fields will continue to benefit from its conversion to a student housing community,” added Mitchell. At closing, The Fields was 98% leased for the 2016-2017 school year.
The joint venture plans to complete $3.4 million of value-add improvements to cure deferred maintenance, upgrade select unit interiors and refresh the property’s curb appeal. “The property has strong in-place revenue,” commented Tom Burton, ABR’s chief investment officer. “Once the capital improvements are complete, the property will be more competitively positioned within the market and we expect to see healthy NOI growth.”
“ABR and Asset Campus Housing have successfully partnered in several student housing projects,” stated John Prugh, president and CEO of ABR. “They have a proven track record and are a strong joint venture partner.” The acquisition of The Fields represents the sixth joint venture between ABR and ACH.