The Preiss Company Acquires Vista Student Housing Complex at the University of Denver in Joint Venture
Wednesday February 18, 2015
Continues to Build on Strong Growth Trend,
Now Industry’s Third Largest Privately Held Company
DENVER, Colo./RALEIGH, N.C., February 17, 2015—Officials of The Preiss Company, the nation’s third largest, privately held student housing owner-operator, today announced that it continues to execute on its aggressive growth plan with the joint venture acquisition of The Vista, a student housing complex located directly across from the University of Denver. The 286-bed property was purchased for an undisclosed amount by a joint venture comprised of Preiss, Baltimore-based Criterion Holdings, LLC as the general partner, and a separate private investment group. The Preiss Company will oversee the property’s operations, as well as an estimated $500,000 upgrade to the facilities.
“This is one of only two purpose-built student housing complexes serving the University of Denver and matches up well with our portfolio,” said Donna Preiss, founder and CEO of The Preiss Company. The Vista is located at 1920 South University Blvd., directly across from the University of Denver campus, several miles from downtown. “Barriers to new development are extremely high in this location, which made this acquisition particularly attractive,” Preiss noted. “When we complete our renovation and implement our proprietary operating programs, we expect to see high ratings from our student renters, as well as excellent returns.”
Plans call for investing approximately $500,000 to include state-of-the-art Internet bundled services, clubhouse and common area upgrades and enhancements to the multiple vistas overlooking Denver’s Rocky Mountain range. The nine-story complex features a computer lab, business center with study rooms, clubhouse with television, outdoor television and pool table, fitness center, stand-up tanning bed, bocci ball court, outdoor fire pit and bike storage. Fully furnished two-, three- and four- bedroom apartments offer flat screen televisions, high speed Internet and stunning views of the mountains.
Monthly rents begin at $749 for The Vista, which includes a utility allowance. Additional information is available at http://www.livevistadenver.com.
Continued National Expansion
“Denver marks our fifth student housing complex campus west of the Mississippi and our 12th new market in the past 18 months,” Preiss said. “We have a very active pipeline and the funding to continue or accelerate our pace of the past few years, with the majority of projects we are reviewing located in the Western half of the country.
“Throughout our growth, we have built a strong infrastructure, more than quadrupling our employee base in the past five years,” she said. “We have the regional infrastructure in place to add properties in both halves of the country through development, acquisitions (primarily through joint ventures) and third-party management. We continue to re-invest in our properties to keep them in peak operating condition, spending some $8.5 million in the past two years.
“Last year we added 11 properties with nearly 3,400 beds to our portfolio, which moved our ranking from fourth to third largest privately held student housing owner-operator in the nation, according to independent sources,” she commented. “In the past five years, we have nearly tripled in size, crossing the 20,000 bed benchmark for the first time last year. We continue to have an aggressive appetite for growth and see numerous opportunities throughout the country and especially in the Western half, where we have established a solid base.
“Looking at 2015, we believe there will be continued consolidation in the industry and an increase in the number of third-party management contracts as owners seek more knowledgeable and experienced operators to handle the special requirements of student housing. We expect to see less student housing development in 2015, as a number of projects have been stalled or delayed, which should put a slight damper on new construction. Nonetheless, we will open at least one new property in 2015 and are looking at several potential sites.”
About Criterion Holdings, LLC
Baltimore-based Criterion Holdings, LLC specializes in differentiated multifamily investment strategies, with a focus on student housing, value-add suburban B/C garden apartments and the renovation of properties located in the District of Columbia. Criterion Managing Member James (“Jamie”) Riordan formerly was a principal with Lubert-Adler Partners, L.P., a Philadelphia-based family of real estate opportunity investment funds. Criterion Principal Peter (“PK”) Knights, formerly a ski industry executive, leads the firm’s development activities and oversees investor relations. The Vista joint venture is one of several ventures between Criterion Holdings and The Preiss Company.
About The Preiss Company
Celebrating its 28th year, Raleigh-based, The Preiss Company specializes in the development, acquisition and management of off-campus student housing. The company currently is the nation’s third largest privately held owner-operator of private student housing. The company’s portfolio currently is comprised of approximately 20,000 beds located in 15 states and 18 markets. For more information, visit www.tpco.com.