Luxury college student housing projects, once feared to be in jeopardy of bankruptcy at the onset of the pandemic, have since become a magnet for real estate investors, Bloomberg Law reported. College students with money to burn have more cushy living options than ever as real estate developers continue building and improving on luxury-style facilities near the nation’s largest universities. As a result, the fears of distress in the sector that bubbled up during earlier parts of the COVID-19 pandemic have largely proven unwarranted. “During COVID there was a big question about student housing as an asset class,” said Mitch Rosen, head of real estate at alternative investment firm Yieldstreet. “That has reversed.” The student housing sector experienced near-record deal levels in 2021, topping out above $10 billion in investment sales, according to commercial real estate firm CBRE. The total is more than twice the volume seen in 2020, it said. The industry has been encouraged by recent on-campus student enrollment rates and a growing preference for apartments with posh amenities. Institutional investors have maintained an interest in properties on or near large universities known for their football teams and other sports programs. Optimism in the market was punctuated in April as Blackstone Inc. announced a $12.8 billion acquisition of student housing operator American Campus Communities. Some projects have run into financial problems, including buildings backed by municipal bonds. The occasional missteps have allowed other well-capitalized firms to scoop up desirable properties at a discount.
