The United States has the world’s largest student housing market, accounting for $ 11 billion in real estate investments, according to the National Apartment Association. And as the pandemic continues and more universities feel the financial crisis, the staffing gap between old campuses like Harvard and Yale and smaller colleges will only grow.
“I think we’re really going to see the story of two cities, but also the story of two universities,” said Laura Dietzel, partner and senior real estate analyst at RSM, an accounting firm.
Cadence offered a one-bedroom rental model before it was acquired by Pebb Capital in September for $ 33 million as part of a partnership with Coastal Ridge Real Estate. Pebb is planning a $ 12 million renovation to convert the property into studios and one- and two-bedroom apartments, bringing amenities and design touches to attract young professionals, who are relocating en masse to Tucson, many of whom are from England. ‘Neighboring states like California, where house prices are significantly higher.
The building is a five-minute drive from the University of Arizona at Tucson, making it ideal for students wishing to live off campus. Once the renovations are complete, rents will no longer be offered by the chamber, Jago said, and he expects the tenant base to change significantly.
“We’re going to become the main downtown multi-family property for young professionals,” he said, “and maybe the upper class or graduate students, those who want to get away from the riffraff. and undergraduates vomiting outside the bar.
The student housing market faces the same challenges as corporate office towers, which have both been crushed by the pandemic, said Patrick J. Sentner, executive vice president of CBRE, a commercial real estate services company.
“Every day that Covid drags on, the doubt and the debate about what will happen, at the office level with the return to work, will be further delayed until we get a vaccine,” he said. he declares. “And that’s exactly what’s happening with student housing.”