Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of a 400-bed student housing community at 512 S. Third St. in Champaign, Ill., located just west of the University of Illinois at Urbana-Champaign campus. This 140-unit asset sold for $29.25 million, approximately $73,000 per bed, or $208,929 per unit.
Scott D. Harris, senior managing director of investments, and associate Bryan W. Kunze, of Marcus & Millichap’s Chicago Oak Brook office, represented the seller, a local private developer. The team also procured the buyer, a Denver-based limited liability company seeking to gain a presence in the Champaign-Urbana market.
“This transaction underscores the strong investor interest for private, near-campus student housing,” said Harris. “With enrollment expected to increase, 512 S. Third St. should be an outstanding core asset for the investment group.”
Located at the corner of Third and Healey streets within a few blocks of the University of Illinois’ Main Quad, the four-story building features a mix of 140 fully furnished residences with one to four bedrooms. Interiors include upgraded flooring, newer appliances and jacuzzi tubs. All apartments also offer in-unit laundry, high-speed internet, central air conditioning, and patios or balconies.
Built in 2001, the community features three shared courtyards, as well as underground parking for 246 vehicles.
“Our extensive network of buyers and sellers, matched with our expertise in student housing markets across the country, maximized the exposure of this property,” said Harris. “As a result, we fielded inquiries from a variety of interested parties, including out-of-state investors drawn to the growth offered by a Big Ten market like Champaign.”
The property is currently 95 percent leased for the 2018-19 school year.
About Marcus & Millichap
With over 1,700 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2016 with a value of approximately $42.3 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.