In December 2021, Institutional Property Advisors (IPA) effectively executed one of the largest student housing transactions of the year: the $998 million sale of a 25-property, 15,883-bed student housing portfolio from Harrison Street Real Estate Capital to a joint venture affiliated with The Scion Group. This transaction, running parallel to Harrison Street’s disposition to Global Student Accommodation (GSA) that year, ranks among the largest single-year portfolio trades in the sector, underscoring IPA’s institutional execution capabilities and Harrison Street’s disciplined value creation approach.
Investment Highlights
The portfolio spans 18 university markets across the United States, featuring a blend of recently developed institutional-grade properties and select value-add assets strategically positioned near top-tier campuses. With four Harrison Street funds and three co-investment vehicles involved, the assets focused on operational excellence, occupancy strength, and market-driven rent growth. Many assets offered proximity to Power-5 universities—a key driver for stable performance and capital appreciation.
“The magnitude and complexity of this transaction demonstrates the maturity of the U.S. student housing industry and the appetite of international and domestic capital for purpose-built university assets,” said Peter Katz, Executive Managing Director of IPA Student Housing, responsible for strategic consulting and transaction execution on behalf of Harrison Street.
Transaction Significance
For Harrison Street, the sale concluded a sophisticated, multi-year investment process. The firm accumulated and refined assets with a goal of maximizing value through operational improvements, strategic capital expenditures, and scale-driven exits. IPA’s advisory role and transaction coordination were central to the seamless transfer of assets across multiple markets and operating partnerships, highlighting the sector’s high bar for execution.
For The Scion Group, the acquisition marked a major expansion—strengthening its leadership as the largest U.S. owner-operator of student housing by adding nearly 16,000 beds and entering several new university markets. Scion’s national footprint grew to more than 140 communities and over 92,000 student beds, reinforcing its capabilities and reinforcing its position as a preferred operator for major institutional investors.
IPA’s advisory guidance was crucial in valuing the assets, determining portfolio composition, negotiating, and managing the intricacies of the deal. The transaction required coordination across multiple operating partners and numerous counterparties, demonstrating both the sector’s institutional sophistication and IPA’s capabilities in executing large-scale portfolio dispositions.
Market Implications
The transaction further demonstrated the institutional acceptance of student housing as a resilient and attractive asset class. High occupancy, healthy rent trends, and continued demand from top-tier universities validated student housing’s fundamentals—driving interest from global investors and operators for scale opportunities in targeted U.S. markets.
Outcomes
- Harrison Street successfully exited a diverse, multi-fund holding, returning significant value across four funds and three co-investment platforms.
- Scion Group expanded its national reach, augments its position in current university markets, and entered several new ones—cementing its place as a student housing sector leader.
IPA solidified its role as the premier advisor for institutional-scale student housing portfolio transactions, shaping strategic outcomes for top-tier owners and operators in the industry.