CAPREIT, a vertically integrated owner and operator of multifamily housing, has expanded into the student housing sector with the acquisition of the 200-unit, 800-bed Coastal Village in Fort Myers, Florida.The off-campus community is within a quick commute to Florida Gulf Coast University, a Division I school with approximately 16,000 students.
“Residents of student housing want all the same things that traditional apartment residents want—namely, superior property management and white-glove service,” says CEO Andrew Kadish. “It’s that kind of touch that CAPREIT can bring to Coastal Village and the student housing industry. The relatively consistent and reliable demand in the student housing sector, combined with our desire to secure steady returns and significant capital appreciation for our investors, gives CAPREIT the perfect opportunity to enter student housing.”
Originally built in 2004, Coastal Village is a pet-friendly community with fully furnished four-bedroom units. Students have access to an outdoor swimming pool, a fire pit, a fitness center, a resident lounge, a coffee bar, and private study spaces. Units also include updated kitchens with granite countertops and islands; built-in desks in each private bedroom; washers and dryers; and private patios or balconies.Kadish points to three factors that made the time right for CAPREIT to enter the student housing sector.
“First, Coastal Village offers a number of opportunities that play to CAPREIT’s strengths. One of these is the ability to offer significant value-add renovations in interior spaces. Second, enrollment of both full-time and part-time students at Florida Gulf Coast University continues to increase, demonstrating an urgent need for quality student housing,” he says. “Third, as smaller and less experienced operators shun the Florida market due to insurance exposure, CAPREIT's large and diversified portfolio allows it to acquire communities that others cannot afford to do so.”
He notes that CAPREIT will continue to target student housing communities across the Southeast.
The company, based in North Bethesda, Maryland, owns and/or manages approximately 12,000 units across the nation, with a portfolio of affordable and market-rate housing. Last year, it entered the single-family build-to-rent sector with the acquisition of Baldwin Chase in Greenville, South Carolina.
“All renters, regardless of type—lower-income, seniors, students, or workforce housing—are looking for the same characteristics in a property management team. They all want a caring management and leasing team, a service team that responds quickly and efficiently to resident requests and an amenity package that is second to none. It is CAPREIT's intention to deliver on all three,” adds Kadish.
