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| Student Housing near Purdue University in West Lafayette, IN market |
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| Barbara J. Gaffen |
CHICAGO, IL (Jan. 26, 2016) – Northbrook, Ill.-based Prime
Property Investors (PPI) today announced the sale of a 25-building student
housing portfolio near Purdue University, marking the firm’s exit from the West
Lafayette, Ind., market.
Acquired in a series of
transactions beginning in 2005, for $32.8 million, the portfolio included 777
beds across 25 buildings, all within blocks of the Purdue campus. PPI sold the
properties for $47.2 million, representing a 44 percent gain over the firm’s
initial investment.
“As one of the largest
student housing operators in West Lafayette, we were regularly approached by
investors that were interested in purchasing the portfolio, but we didn’t feel
the timing was right until now,” said Barbara
J. Gaffen, co-CEO of PPI.
“In markets like West
Lafayette where we’ve been able to capitalize on record or near-record pricing,
we have strategically been selling off our student housing assets and
redeploying that capital into other high-growth sectors – including multifamily
and, most recently, healthcare – that will allow us to achieve attractive
returns on behalf of our investors.”
PPI owned and managed all
of the West Lafayette properties, which included a mix of studio, one-, two-,
three- and four- bedroom apartments. The buildings consistently operated at 100
percent occupancy throughout PPI's 10 years of ownership. Purdue’s West
Lafayette, Ind. campus had a fall 2015 enrollment in excess of 39,000 students.
“Our ability to
competitively position these properties over the past decade allowed us to
generate significant interest from prospective buyers,” added Gaffen.
In order to maximize its
return, PPI sold the portfolio through 18 separate transactions, the last of
which was completed in December 2015. Buyers included a combination of local,
national and foreign investment groups.
For a
complete copy of the company’s news release, please contact:
Kelly Shumaker, kshumaker@taylorjohnson.com, 312-267-4519
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