In December 2017, Institutional Property Advisors (IPA) brokered one of the largest student housing portfolio transactions ever recorded to date: the $1.0 billion sale of a 22-property, 11,950-bed portfolio from Harrison Street Real Estate Capital to Scion Student Communities, LP—a joint venture comprising The Scion Group, GIC, and the Canada Pension Plan Investment Board (CPPIB)—elevating Scion’s standing as the largest owner and operator of student housing communities in the United States.
Investment Highlights
The portfolio encompassed 19 leading university markets across 18 states, featuring a strategic mix of recently developed Class-A assets in Tier 1 markets and select value-add opportunities with significant repositioning potential. With an average portfolio age of less than five years and over 70 percent of assets located within one mile of their respective campuses, the acquisition represented best-in-class student housing infrastructure positioned for sustained cash flow and operational excellence.
“This transaction marked a defining moment for the student housing industry,” said Peter Katz, Executive Managing Director of IPA Student Housing, who provided strategic consulting on the deal. “The portfolio’s scale and quality made it a once-in-a-generation opportunity, demonstrating both the maturity of the sector and the appetite of major institutional investors for purpose-built student communities.”
For Harrison Street, the disposition represented the culmination of a multi-year value-creation strategy involving five separate funds and multiple operating partners. The seller successfully demonstrated the viability of acquiring individual student housing assets, enhancing operational performance, and creating substantial value through large-scale portfolio exits.
For The Scion Group, already the largest owner and operator of student housing nationwide, the acquisition expanded Scion’s national portfolio and enhanced its leadership in the off-campus student housing sector. The transaction added six properties in existing markets, consistent with Scion’s strategy of concentrating capital in targeted university locations to maximize operational synergies and market penetration.
Transaction Significance
This landmark deal underscored the mainstream acceptance of student housing as a core institutional real estate asset class, attracting global sovereign wealth funds and pension capital alongside traditional private equity investors. The complexity of the transaction—involving multiple fund structures, operators, and stakeholders—demonstrated the sector’s maturation and the sophistication now required for large-scale execution.
IPA’s advisory role was pivotal in underwriting, structuring, and executing the seamless transfer between two of the industry’s most respected institutional platforms.
Market Implications
The transaction validated student housing’s resilient fundamentals, driven by consistent enrollment at leading universities, limited supply in top-tier markets, and growing demand for modern student-driven accommodations. Institutional investors continue to view the sector as offering attractive risk-adjusted returns with strong downside protection and long-term growth potential.
Outcomes
- Harrison Street successfully exited its multi-year investment with significant returns and market validation.
- The Scion Group expanded its national footprint, added thousands of beds, and reinforced its operational leadership.
IPA further established its reputation for executing high-value, multi-market transactions within the student housing industry.