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Real Estate

Nelson Partners Underlines a Few Interesting Aspects About Purpose-Built Student Housing

The United States has led the way in the private, purpose-built, student housing market ever since its emergence in the early 1990s. This sector was developed in response to traditional on-campus accommodation. A number of companies have ventured into this domain over the years, Nelson Partners being one of them. This company specializes in developing, acquiring and managing quality purpose-built student housing assets. Currently, they manage 18 properties in 11 states across the U.S. and have managed to successfully develop millions of dollars in student housing properties over the years.

While university owned halls of a residence s still account for the bulk of the US purpose-built student housing market especially the ones meant for first year undergraduates, the number of privately developed properties in this domain is increasing consistently. The expansion of the private student accommodation sector has witnessed a surge in purpose-built residences. These properties are available both on and off campus, and help in meeting the growing demand from domestic and international students who are seeking superior living space.  A number of these projects have been delivered in partnerships with universities, while bearing the hallmark of a new era.  While the properties targeted all students, they do try to schemes rent at a price premium to their earlier university-provided counterparts. This premium amount is justified by superior quality accommodation provided by the purpose-built student housing properties, as well as the large range of amenities offered by them, including fitness centers, games rooms, study rooms and swimming pools.

The popularity of the United States as a hub for higher education among international students have been the key to the expansion of the student accommodation sector in the nation, in terms of both quality and size. In the current environment, the purpose built student housing market of the country is majorly dominated by private investors, chiefly developers and owner-operators. However, recently dedicated student real estate investment trusts (REITs) have grown pretty rapidly as well. Their growth in importance in the market of the United States reflects the maturity of the sector and its capability to magnetize money from the sphere of indirect investment.

Talk of tapering and a generally strong equities market has contributed to the start of bond yields to move outwards. This can impact multiple other income-producing investments, including REITs. It can additionally even start suppressing capital values of such a type of student housing vehicle in advance of capital value suppression in direct property. As interest rates rises on the horizon, it has been perceived as a potential headwind in direct property generally and in the student housing sector, in particular, owing to its relatively small investor base. To make the smartest investment, it will be prudent to contact companies like Nelson Partners Student Housing. They are a nationally recognized real estate investment firm. They have a highly skilled and dedicated team with significant student housing experience in acquiring, financing, developing, and managing student housing real estate investments.