Colliers International STUDENT HOUSING National Sales Report 2016 Year End
NATIONAL SALES In 2016 there were 330 recorded student housing transactions totaling over $6.6 billion in sales with an average sales price of $26,377,627 (252 of 330 properties reported). Total reported transactions increased from 221 in 2015 to 330 in 2016. Total sales volume also increased by over 62% from $4.0 billion in 2015. There were 56,174 units and 140,143 beds transacted in 2016 averaging 180 units and 528 beds per transaction. 2016 saw an increase of 52% in total units and 58% in total beds transacted. The average PPU was $200,915 and PPB was $67,769. NORTHEAST 10% 18% 18% MIDWEST 18% 25% SOUTHWEST 13% SOUTHEAST 34% 37% WESTERN 15% 17% 10% 20% 30% 40% TRANSACTIONS NORTHEAST MIDWEST SOUTHWEST SOUTHEAST WESTERN 33 10% $1,175,656,342 82 25% $1,195,132,051 44 13% $857,353,572 121 37% $2,258,115,366 50 15% $1,160,904,688 330 $6,647,162,017 All data is based on reported transactions from Real Capital Analytics (RCA), 18% 18% 13% 34% 17% TRANSACTIONS 3 Colliers International Student Housing Group www.studenthousingbrokers.com Colliers International Student Housing Group 3
TIER ONE (20K+ ENROLLMENT) Tier One markets continued to experience tremendous year-over-year growth in 2016. There were 232 recorded transactions in Tier One Markets throughout 2016 which totaled more than $4.6 billion in sales (175 of 232 properties reported) with an average sales price of $26,772,431. Total Transactions Collectively, 41,509 units and 107,175 beds transacted in 2016 averaging 180 units and 528 beds per transaction. The average price per unit (PPU) was $200,915 and the average price per bed (PPB) was $67,769. Tier One markets with 20,000 students or more accounted for approximately 70% of total sales dollars for the year. 2016 Total Units Sold Total Beds Sold 37.3% 39.0% 47.4% 46.4% Total Sales Volume Year End Report Tier One 232 2015 169 41,509 2015 29,870 107,175 2015 72,693 $4.685M 2015 $3.200M With an average sales price of $26,772,431 in 2016, (175 of 232 properties reported) it can be estimated that approximately $6,211,203,962 in total transactions (232 reported properties) occurred in Tier One markets alone for the year. 0.81% Average Price per Unit -7.72% Average Price per Bed $200,915 2015 $199,298 $67,769 2015 $73,439 1 Colliers International Student Housing Group www.studenthousingbrokers.com
Total Units Sold Total Beds Sold Total Transactions TIER TWO & THREE (0-10K & 10K-20K ENROLLMENT) Tier Two & Three Markets experienced significant growth from 2015, outjpacing historical performance over hte past five years. With 98 recorded transactions in Tier Two and Tier Three markets in 2016, there was more than $1.9 billion in sales (77 of 98 properties reported) with an average sales price of $25,480,346. Collectively, 14,665 units and 32,968 beds transacted in 2016 averaging 150 units and 366 beds per transaction. The average PPU was $149,879 and the average PPB was $54,863. Tier Two and Tier Three markets with less than 20,000 students accounted for approximately 30% of total sales dollars for the year. With an average sales price of $25,480,346 in 2016, (77 of 98 properties reported) it can be estimated that approximately $2,497,073,873 in total transactions (98 properties reported) occurred in Tier Two and Tier Three markets alone for the year. 2016 88.5% 108.2% 109.3% 145.3% Total Sales Volume -8.57% Average Price per Unit 0.21% Average Price per Bed Year End Report Tier Two & Three 98 2015 52 14,665 2015 7,045 32,968 2015 15,753 $1.962M 2015 $880K $149,879 2015 $163,931 $54,863 2015 $54,748 2 Colliers International Student Housing Group www.studenthousingbrokers.com
REGIONAL MARKET SUMMARIES SOUTHEAST 121 TRANSACTIONS $2.258 M 24,000 UNITS 317,855 BEDS TN KY WV VA NC ND SD NE MN IA WI MI AR LA MS AL GA SC KS MIDWEST 82 TRANSACTIONS $1.195 M 11,346 UNITS 27,769 BEDS MO IL IN OH FL AK ME WA VT MT MD PA NY NJ DE MA CT NH RI NORTHEAST 33 TRANSACTIONS $1.175 M 5,618 UNITS 13,487 BEDS CA OR NV ID UT WY CO HI AZ NM SOUTHWEST 44 TRANSACTIONS $857 K 9,016 UNITS 24,348 BEDS TX OK LA WEST 50 TRANSACTIONS $1.160 M 6,194 UNITS 13,145 BEDS 4 Colliers International Student Housing Group www.studenthousingbrokers.com Colliers International Student Housing Group 5
PORTFOLIO TRANSACTIONS There were three significant portfolio sales in 2016 consisting of twenty or more properties respectively. These portfolios, totaling over 100 individual assets and $3.65B representing 55% of all reported dollar volume for 2016. The total transactional volume accounted for 55% of the total national volume in 2016. Additionally, more than 22,000 units and 62,800 beds were sold which accounted for 40% of total national units sold and 45% of total national beds sold in 2016. Harrison Street Real Estate Capital (HSRE), the largest private equity firm focused on real estate investments in the education, healthcare, and storage sectors, recently completed the acquisition of Campus Crest Communities (CCG) in March of 2016. The total transaction volume is estimated at $1,817,204,868 with 62 out of 65 properties reported. The average PPU was $132,398 and the average PPB was $50,204 in this transaction. Harrison Street believes this is the largest acquisition of student housing properties in the industry. 65 PROPERTIES $1.8B 14,149 UNITS 38,562 BEDS Scion Student Communities LP, a joint venture between Singapore foreign capital investor GIC and the Canada Pension Plan Investment Board, completed the acquisition of University House Communities Group, Inc. owned by InvenTrust in June of 2016. University House Communities Group, Inc. is a student housing ownership and management subsidiary wholly-owned by Marylandbased InvenTrust Properties Corporation. This portfolio acquisition included 4,890 units and 13,260 beds for a total estimated transaction volume of $1,400,000,000. Both parties handled the direct sale in-house. The average PPU was $286,299 and the average PPB was $105,581 for the 22 properties reported out of the 22 property portfolio. The InvenTrust portfolio is comprised of 18 stabilized student housing complexes and four properties under development. Scion has surpassed Education Realty Trust to become the third-largest student housing owner in the country with more than 38,000 beds after this acquisition. 22 PROPERTIES $1.4B 4,890 UNITS 13,260 BEDS 5 Colliers International Student Housing Group www.studenthousingbrokers.com
PORTFOLIO TRANSACTIONS In partnership with Campus Advantage, Saban Real Estate has completed the acquisition of twenty student housing communities from American Campus Communities (ACC) in November of 2016. ACC is a leading developer, owner and manager of high-quality student housing. Saban Real Estate is one of the largest private owners and operators of real estate property in the United States while Campus Advantage is an Austin-based real estate firm and leader in student housing management, development, acquisition, and consulting services. The total transaction volume totaled $432,865,630 for 3,329 units and 11,026 beds (18 of 20 properties reported). The average PPU was $131,000 while the average PPB was $41,040 in this reported transaction. Saban and Campus Advantage collectively own and/or operate a portfolio of over 35,000 beds across 40 universities with this acquisition, making them the 4th largest owner/operator of offcampus, purpose-built student housing communities in the US. 20 PROPERTIES $432.8M 3,329 UNITS 11,026 BEDS PORTFOLIO TRANSACTION STATISTICS National Sales $2,997,091,519.07 45% HSRE/CCG $1,817,204,867.87 27% Scion/InvenTrust $1,400,000,000.00 21% CA/Saban/ACC $432,865,630.37 7% $6,647,162,017.32 100% UNITS National Sales 33,806 60% HSRE/CCG 14,149 25% Scion/InvenTrust 4,890 9% CA/Saban/ACC 3,329 6% 56,174 100% BEDS National Sales 77,295 55% HSRE/CCG 38,562 28% Scion/InvenTrust 13,260 9% CA/Saban/ACC 11,026 8% 140,143 100% 6 Colliers International Student Housing Group www.studenthousingbrokers.com
Colliers International Student Housing Group www.studenthousingbrokers.com Travis Prince Senior Managing Director TEL +1 813 767 9960 travis.prince@colliers.com Dorothy Jackman Senior Managing Director TEL +1 813 928 0020 dorothy.jackman@colliers.com Sean Baird Associate TEL +1 727 450 6158 sean.baird@colliers.com Prepared By: Victoria Marks Senior Financial Analyst TEL +1 727 298 5332 victoria.marks@colliers.com Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence, and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our clients, our people and our communities. Professionals 15,000 Countries 68 US in Annual Revenue $2.6 billion Deepto Mukherjee Research and Financial Analyst TEL +1 727 450 6965 deepto.mukherjee@colliers.com SF Under Management $2 billion Terrie Richter Client Services Specialist TEL +1 813 871 8524 terrie.richter@colliers.com US in Total Transaction Value $105+ billion Colliers International Debt & Equity Finance Services Michael Strober Senior Managing Director TEL +1 813 767 9960 travis.prince@colliers.com Don Jennewein Senior Managing Director TEL +1 813 928 0020 dorothy.jackman@colliers.com Nathan Lynch Associate TEL +1 727 450 6158 sean.baird@colliers.com DISCLAIMER This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). Updated March 2015 2017. All rights reserved.