Aspen Square Management, a national real estate investment and management firm based in West Springfield, Massachusetts, has acquired a student housing property in Carrollton, Georgia, that it plans to convert into a multifamily community. The 240-unit, 792-bed Timbercrest at Carrollton was purchased from DoubleLine Capital for an undisclosed price.
“This transaction represents a new trend for student housing communities with sub-90% occupancy located over 1 mile from campus in markets with a strong multifamily property,” said Sean Baird, director of student housing services at Colliers, who facilitated the transaction. “Some buyers are converting these types of properties into multifamily. In this case, the buyer now has an excellent opportunity to lower expenses and increase occupancy because competing multifamily properties in the market, which are inferior to Timbercrest, average the same rental rate per square foot.”
Timbercrest at Carrollton is located approximately 1.2 miles from the University of West Georgia and less than an hour from downtown Atlanta. Since May 2019, the community, which was approximately 87% occupied at the time of the sale, has undergone nearly $1.1 million in capital improvements, including upgrades to the swimming pool, basketball courts, the courtyard, and the technology package.
“The competitive landscape favors student housing communities that are within an easy walk of campus, and this presents opportunities to convert older assets farther from campuses to multifamily,” Baird added. “This also helps the student housing market stabilize across the board, with an increase in occupancy and rent for properties that are closer to the schools. So, it’s a win-win all around.”