RALEIGH, NC - Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, announced that it had formed a joint venture with a private investment group to acquire two student housing complexes in Raleigh, N.C., for an undisclosed amount. The transaction brings to seven the number of properties transacted by Preiss year-to-date. Both student housing units, the 440-bed College Inn and the 288-bed University Village at 2505, will continue to be operated by The Preiss Company.
“Preiss previously was a joint venture partner in these properties,” said Donna Preiss, founder and CEO of The Preiss Company. “Our former partner had achieved its objectives with these assets and wanted to harvest the return on their investment.
“We have a diverse number of strategic partners with different investment criteria. This allowed us to work with another of our investor partners to acquire these assets which still have great upside,” she said.
“Coming into 2016, Preiss set a goal of adding 10 properties,” she noted. “We have the largest pipeline in our history and could exceed that goal by as early as this summer. Based on our current rate of acquisitions, we will have an exceptional year, perhaps a record. There are a large number of properties on the market, ranging from those that would benefit from major renovation/repositioning to those that need more focused management. There also remains opportunities to develop new properties. Financing remains attractive, and we see continued demand growth. We continue to believe this is an excellent time to be investing in student housing.”
College Inn—Located at 2717 Western Blvd, the 440-bed facility is housed in a four-story building on a three-plus-acre-site. Conveniently situated across from North Carolina State’s Main Campus and close to its Centennial Campus, the property features a large club house with a computer lab and study rooms, fitness center and game room. Fully furnished rooms include plank wood floors, washers and dryers.
Preiss will oversee a substantial rooms upgrade of College Inn with an expected start date during the fourth quarter of this year. Elements include new lighting, appliances, cabinets, countertops and furniture. The clubhouse and building exteriors, as well as landscaping, will be enhanced.
University Village at 2505—Located at 2505 Red Lodge Place, less than a mile from the Centennial Campus, the complex consists of four, four-story buildings housed on approximately nine acres. The gated community has a club house with Internet café, fitness center and self-serve Starbucks coffee bar, as well as a resort-style swimming pool and sand volleyball court. Each fully furnished, four-bedroom suite has a common social area, private bedrooms and bathrooms and walk-in closets. The rooms offer state-of-the-art interior finishes, including stainless steel appliances, granite countertops and plank wood flooring. The property provides a free shuttle to the Main and Centennial Campuses, as well as resident events. University Village 2505 was developed by Preiss in 2012 specifically for student housing.
“Upon completion of the renovation to College Inn, these two complexes will be in excellent physical condition. Both properties will benefit from the significant operational economies of scale we have in Raleigh,” she said. “We own and or operate 14 student housing complexes in the city and work closely with our student residents and North Carolina State University to provide quality housing and a great college experience.”