Purchase of off-campus housing community located near the University of Texas-Austin.
RALEIGH, NC – December 7, 2006 – The Preiss Company (“TPCO”), the largest housing provider of off-campus student housing at North Carolina State University, Clemson University, and UNC Charlotte (in 2007), is pleased to announce its third strategic joint venture with Harrison Street Real Estate Capital (“HSRE”) to acquire Crossing Place, a 1,152-bed student housing project at the University of Texas-Austin. In less than 12 months, TPCO and HSRE have started development on or have acquired three properties representing over 2,300 beds. This acquisition reinforces both companies’ strategy of acquiring and developing student housing communities in targeted markets to build an institutional quality portfolio.
Crossing Place represents TPCO’s first student housing acquisition in Texas. As with all other properties that TPCO acquires, the decision to invest in this property is a result of in-depth research and aggressive marketing and management techniques. “The Preiss Company is constantly searching for sound investment opportunities in the markets we’re currently in, as well as exploring new markets,” says TPCO Founder and Chief Executive Officer, Donna Preiss. “We use technology and data collection to ensure that our properties meet the needs of our clients. It is our ability to exceed our clients’ expectations on every level that has made The Preiss Company a leader in the student housing market.”
Crossing Place’s 348 units will feature three distinct floor plans: two bedroom/two bathroom, three bedroom/three bathroom, and four bedroom/four bathroom one-story garden-style plans. The complex is located within three miles of the University of Texas-Austin campus and offers a full-range of amenities including pool, basketball and volleyball courts, and clubhouse with exercise facilities and a student lab. TPCO is planning to provide further enhancements and improvements to both the exterior and interior of the property.
The Venture with HSRE is consistent with TPCO’s commitment to continue growing its presence throughout targeted university markets. The company’s goal is to become the largest off-campus provider in each of the markets that it selects. “We’re very proud to be partnering with Harrison Street Real Estate Capital in the acquisition of this community,” adds Preiss. “Our previous ventures with Harrison Street are extremely successful. We have every reason to believe that Crossing Place will meet with the same positive results.”
HSRE is a real estate private equity firm that focuses on providing equity capital to operators that are active in the specialty areas of the real estate market. These include student housing, senior housing, self storage, medical office, and parking. “We are extremely excited by the opportunity that Crossing Place presents us. The Preiss Company’s ability to execute a value-add property management program in the context of a balanced Austin conventional market presents an opportunity to realize on this investment,” says Harrison Street Real Estate Capital Principal, Dean Egerter.
TPCO’s and HSRE’s first investment was the acquisition of the 130-unit (520-bed) University Club student housing complex located in Charlotte, North Carolina, acquired in January 2006. This project is nearly 100% occupied for the 2006-07 school year. The partnership’s second investment, University Village, is currently under construction and on time for student lease–up starting in August 2007.
Morgan Stanley provided financing for the Venture.
About The Preiss Company
The Preiss Company was founded in 1987 by Donna Preiss with a mission of maximizing real estate investor returns by helping in all aspects of real estate investment. This includes the selection, purchase, sale, exchange, and management of property. Since that time, it has formed more than 50 partnerships, has been the developer or co-developer of over 20 projects in North and South Carolina, and provides residences for more than 6,000 college students annually. For more information, visit www.tpco.com.
About Harrison Street Real Estate Capital
Harrison Street Real Estate Capital (“HSRE”) is a real estate private equity firm that provides equity capital to those operators it believes offer innovation in products and process, and who operate in specialty areas of the real estate market. HSRE seeks to identify investments in fragmented markets or in those markets where there exist demonstrable demand drivers (such as Universities and Hospitals) and very favorable demographic fundamentals. For more information, visit www.harrisonst.com.