Campus Advantage, one of the largest managers of student housing properties in the U.S., closed Tuesday on the second phase of its investment to acquire a 19-property portfolio from American Campus Communities. The deal includes two locations near Penn State University.
The two properties near Penn State, Lions Crossing at 201 Vairo Blvd. and Nittany Crossing at601 Vairo Blvd., will undergo a revamp during the next two years. Jennifer Cassidy, Campus Advantage’s senior vice president of asset management, said the unit and clubhouse interiors will get upgrades such as new flooring, appliances and fixtures.
“These two properties have performed exceptionally well,” she said. “However, there is a plan over time to freshen up the amenities. There are plans to touch up the clubhouse and all the amenity space. So the clubhouse would mean the pool, the actual office area, the gym — all of those things.”
The acquisition is part of the initial $508 million deal.
Lions Crossing and Nittany Crossing were acquired for more than $82.5 million total, according to property deed listings.
Campus Advantage and Saban Real Estate, its partner in the deal, plan to invest $30 million across the properties, which include more than 12,000 beds near universities in the South and East Coast. Besides Penn State, Campus Advantage has acquired student housing properties near Michigan State University, Florida State University and the University of South Carolina, among others.
A third and final phase will be completed in April. The second phase featured six properties, including Lions Crossing and Nittany Crossing.
In November, Campus Advantage reached $1.2 billion in assets. The Austin, Texas company focuses on social and educational programming for its housing communities, Cassidy said, and looks to partner with universities in improving the living experience for students.
“One of our differentiators from other student housing management companies is our residence life,” she said. “Immediately, I think that will be a big difference for them. Then over time you’ll see the differences in the clubhouse and the units as we go through and phase in those upgrades.”