NORTHBROOK, IL - Prime Property Investors (PPI) today announced the sale of a 25-building student housing portfolio near Purdue University, marking the firm’s exit from the West Lafayette, Ind., market.
Acquired in a series of transactions beginning in 2005, for $32.8 million, the portfolio included 777 beds across 25 buildings, all within blocks of the Purdue campus. PPI sold the properties for $47.2 million, representing a 44 percent gain over the firm’s initial investment.
“As one of the largest student housing operators in West Lafayette, we were regularly approached by investors that were interested in purchasing the portfolio, but we didn’t feel the timing was right until now,” said Barbara J. Gaffen, co-CEO of PPI. “In markets like West Lafayette where we’ve been able to capitalize on record or near-record pricing, we have strategically been selling off our student housing assets and redeploying that capital into other high-growth sectors – including multifamily and, most recently, healthcare – that will allow us to achieve attractive returns on behalf of our investors.”
PPI owned and managed all of the West Lafayette properties, which included a mix of studio, one-, two-, three- and four- bedroom apartments. The buildings consistently operated at 100 percent occupancy throughout PPI's 10 years of ownership. Purdue’s West Lafayette, Ind. campus had a fall 2015 enrollment in excess of 39,000 students.
“Our ability to competitively position these properties over the past decade allowed us to generate significant interest from prospective buyers,” added Gaffen.
In order to maximize its return, PPI sold the portfolio through 18 separate transactions, the last of which was completed in December 2015. Buyers included a combination of local, national and foreign investment groups.
About Prime Property Investors: Prime Property Investors (PPI) is a real estate investment firm with a national portfolio of Class A suburban garden-style apartment communities, as well as student housing properties on major college campuses. Barbara J. Gaffen and Michael H. Zaransky, co-CEOs of PPI, founded the company in 1993, and today oversee $230 million in properties. For more information on Prime Property Investors, visit www.primepropertyinvestors.com.