JLL Capital Markets announced the sale of The Stretch, a 170-unit, 533-bed student housing community in Lexington, Kentucky, serving the University of Kentucky.
JLL represented the seller, a joint venture between Campus Advantage and Tramview Capital Management, in the sale to GMH Communities.
Located at 1051 Red Mile Road, just 0.64 miles from campus, The Stretch offers students a mix of two-, three- and four-bedroom units averaging 1,155 square feet. The property, built in 2009, features resort-style amenities including a clubhouse, pool, hot tub, fitness center, basketball/pickleball court, volleyball court, study rooms, tanning salon and outdoor grilling areas. Additionally, the community is close to a wide array of restaurants, entertainment venues and shopping areas.
The Stretch is currently 96% leased for the 2024-2025 academic year, with 10.8% year-over-year rent growth. This performance is supported by strong market fundamentals, with the University of Kentucky’s enrollment increasing by 7% in 2024 and no off-campus student housing development in the pipeline.
“The Stretch represented an excellent investment opportunity in a thriving student housing market,” said Leatherman. “Given the current undersupply of purpose-built student housing beds relative to demand, we anticipate continued strong occupancy rates and rent growth potential for The Stretch in the coming years.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
