In November 2021, Institutional Property Advisors (IPA) successfully brokered a significant student housing portfolio transaction: the sale of a 12-property, 8,182-bed portfolio from Harrison Street Real Estate Capital to Global Student Accommodation (GSA)—marking GSA’s second major portfolio acquisition within twelve months of entering the US market and doubling their American footprint in a strategic expansion across premium university locations.
Investment Highlights
The portfolio encompassed 12 leading university markets across 10 states and 12 university markets, stretching from East to West Coast with exceptional proximity to prestigious institutions. Notably, five properties were strategically positioned near Power-5 universities in Alabama, Oregon, Washington, Arizona, and Kentucky, representing best-in-class student housing infrastructure in markets with strong enrollment fundamentals and limited supply. With strong occupancy and a demonstrated track record of consistent rental growth, the portfolio offered immediate cash flow stability paired with strategic value-add opportunities.
“This transaction was instrumental for GSA’s US expansion strategy,” said Peter Katz, Executive Managing Director of IPA Student Housing, who led the strategic disposition on behalf of Harrison Street. “The portfolio’s geographic diversification and proximity to leading institutions created a compelling opportunity for GSA to establish meaningful scale in the world’s largest student housing market while leveraging their global operational expertise.”
Transaction Significance
For Harrison Street, the disposition exemplified the firm’s sophisticated portfolio execution strategy, involving assets owned across three distinct Harrison Street funds and four co-investment vehicles in conjunction with multiple operating partners. The transaction demonstrated Harrison Street’s ability to acquire individual assets, execute value-creation initiatives, and achieve optimal exits through large-scale portfolio sales.
For GSA, the acquisition marked a pivotal expansion milestone, doubling their US presence and reinforcing their strategic commitment to selective growth in the American market. The transaction included The Hub at Tucson near the University of Arizona, adding significant operational synergies to GSA’s growing national platform under the management of their operating partner, Yugo.
This strategic portfolio disposition underscored the institutional acceptance of student housing as a core real estate asset class, attracting sophisticated international capital seeking exposure to the resilient fundamentals of American higher education. The complexity of the transaction—involving multiple fund structures, operating partners, and cross-border execution—demonstrated both the sector’s maturation and GSA’s capabilities as a global student housing leader.
IPA’s advisory role proved instrumental in underwriting, navigating the intricate multi-party structure, procuring the buyer, and driving value for our client, Harrison Street.
Market Implications
The transaction emphasized student housing’s defensive characteristics during a period of economic uncertainty, with properties demonstrating resilience through consistent occupancy and rental performance. International investors continued to view American student housing as offering attractive risk-adjusted returns supported by enrollment stability at leading universities and growing demand for modern, amenitized accommodations.
Outcomes
- Harrison Street successfully executed a sophisticated multi-fund exit strategy, delivering strong returns to investors across multiple vintage years and investment vehicles.
- GSA achieved meaningful scale in the US market, establishing a diversified geographic platform spanning coast-to-coast with operational synergies under Yugo management.
IPA further solidified its position as the preeminent advisor for large-scale student housing portfolio transactions, continuing its track record of executing complex institutional dispositions.