Blackstone Inc. is broadening its bet on U.S. student housing, forming a $784 million joint venture with Landmark Properties.
The new partnership will recapitalize a portfolio of buildings with 5,416 beds, according to a statement on Friday.
“We’ve seen a very quick uptick in student housing occupancy to pre-Covid levels, which is one of the reasons we’re so bullish on the space,” Jacob Werner, Blackstone senior managing director in the real estate group, said in an interview.
Investors are betting on college housing as students flock back to campus after more than a year of Covid-19 restrictions. They’re seeing a relative bargain in the typically private, off-campus complexes compared with the cost of apartments and other residential assets, which have soared in value since the pandemic.
Landmark, based in Athens, Georgia, operates more than 75 student-housing properties with nearly 51,000 beds. The firm has $7.7 billion in assets under management.
