Providence-based Gilbane Development Company formed a strategic partnership with CBRE Investment Management (CBREIM) involving six purpose-built student housing properties across the country. The transaction included recapitalization of three operational communities through a GP-led secondary and three shovel-ready development projects, marking the beginning of a joint venture partnership.
The initial six purpose-built student housing communities will encompass nearly 3,000 beds. They span six Power 4 schools, with three operating communities at Clemson University, University of Illinois and Syracuse University, along with three developments at the University of Central Florida, University of California, Berkeley and University of Florida.
The existing portfolio is more than 97 percent occupied for the 2024 academic year. All communities are designed with study lounges, fitness centers and recreational areas. The buildings are located to provide students with convenient access to campus resources and local amenities.
TSB Capital Advisors arranged financing and consulted on the joint venture partnership. Gilbane Development Co. and CBREIM said in prepared remarks that they are committed to exploring additional expansion opportunities.
Gilbane Development Co. has more than $8.5 billion in development and more than 25,000 units of housing completed/underway. This year, the company completed Legacy Hall, a 604-bed student, 167,000-square-foot residence hall and tower on Morgan State University’s Baltimore campus.
“This collaboration aligns with our mission to develop dynamic communities that cater to the needs of students, universities, and the surrounding communities,” said Russell Broderick, EVP, Gilbane Development.
Added Matt Tepper, head of Americas Indirect Real Estate Strategies at CBREIM, “Student housing is a target sector for us and being able to partner with Gilbane and benefit from a high-quality existing portfolio along with leveraging their extensive development capability will allow us to build something special.”
TSB Capital Advisors arranged financing and consulted on the joint venture partnership. Gilbane Development Co. and CBREIM said in prepared remarks that they are committed to exploring additional expansion opportunities.
