RALEIGH, N.C.--(BUSINESS WIRE)--Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, today announced the acquisition of the 546-bed student housing complex, Campus Edge, in Raleigh, N.C., in a joint venture with a private investment group for an undisclosed price. Located at 3551 Cum Laude Ct., Campus Edge is within walking distance to the North Carolina State Centennial campus and approximately two miles from the main campus. The acquisition comes on the heels of the company’s first quarter student housing acquisitions of a three-property portfolio in Boca Raton, Fla., and a transaction in Greensboro, N.C.
“This off-market transaction continues our aggressive growth through both acquisition and third-party management contracts,” said Donna Preiss, founder and CEO, The Preiss Company. “While we have expanded to 23 markets nationwide, we continue to look for in-fill opportunities in existing markets.”
“Raleigh is our headquarters city and we have unparalleled expertise here. This is our 14th property in the market which gives us tremendous economies of scale, supported by a deep, experienced infrastructure. Our national footprint exposes us to new practices and opportunities. However, North Carolina remains an important market. We are the largest student housing provider in the state, as well as at NCSU. We see continued opportunity throughout North Carolina and have excellent relationships with the leading colleges and universities,” she added.
Preiss will commence an extensive $2.2-million renovation this year, which the company expects to complete ahead of the 2017 – 2018 school term. The project includes fully renovating the clubhouse and significant upgrades such as new flooring, countertops, upgraded black appliances and lighting in a substantial number of the units.
Campus Edge consists of 13, two- and three-floor, garden-style buildings situated on a 25-acre landscaped setting. Amenities include a computer lab, resort-style swimming pool, fitness center, tanning bed, volleyball and basketball courts, Dog Park, clubhouse game room and car wash area. Furnished units feature nine-foot ceilings, patios or balconies, all appliances, full-sized washers and dryers, private bathrooms, walk-in closets, monitored intrusion alarms, extended basic cable and high speed internet. Unfurnished units, approximately 12 percent of inventory, also are available.
The complex is the closest garden-style property to the Centennial Campus and the only one that offers one-bedroom units south of the main campus. A city bus line stops directly in front of Campus Edge providing fast, easy access to both the main and centennial campuses.
“Interest rates remain at low levels which has a positive effect on deals ‘penciling out,’” Preiss said. “However, attractive financing is only part of the equation. The ability to improve operations, a core Preiss strength, is an equal component in generating superior returns. A significant number of properties on the market today often are for sale because they lack experienced management. Student housing operations arguably are the most difficult of multi-housing types to manage. It is more hands-on and requires more sophisticated systems and programs to optimize margins and high student satisfaction.”
Preiss noted that the company and its investment partners continue to focus on properties that can benefit from significant upgrades, such as Campus Edge, as well as properties that have upside by improving operations. “We also continue to have interest in development and currently are working on a core project in Raleigh, N.C. Our acquisition pipeline remains quite robust, and we have the capacity, infrastructure and appetite to continue to add a significant number of properties to both our owned and managed portfolios.”
About The Preiss Company
Celebrating its 29th year, Raleigh-based The Preiss Company specializes in the development, acquisition and management of off-campus student housing. The company is the nation’s third largest privately held owner-operator of private student housing. The company’s portfolio currently is comprised of approximately 28,000 beds located in 16 states and 23 markets. For more information, visit www.tpco.com.