The Preiss Company Continues Aggressive Growth with Acquisition of Student Housing Properties in Calif. and Texas
Thursday March 02, 2017
RIVERSIDE, Calif. & HUNTSVILLE, Texas & RALEIGH, N.C.--
Officials of The Preiss Company (TPCO), ranked the nation’s fifth largest, privately-held, student housing owner-operator, today announced the continuation of its robust growth plan with its first two joint venture acquisitions of 2017:
The 760-bedroom GrandMarc at University Village (proximate to The University of California, Riverside)
The 416-bedroom Gateway at Huntsville (near Sam Houston State University)
Both purpose-built, student-housing properties were acquired in separate joint ventures for undisclosed amounts from different private investment groups. TPCO will operate the facilities, as well as oversee renovations and upgrades.
“These acquisitions reflect our continued drive for nationwide expansion,” said Donna Preiss, founder and CEO, The Preiss Company. “Our portfolio has more than doubled in size to more than 50 properties over the past five years. Both of these complexes reflect the profile we seek: quality assets near large universities that are experiencing rapid enrollment growth. In addition, we see opportunities to enhance these properties with upgrades and installation of our proprietary, student-focused management systems.
“This is our second student housing complex in California and our seventh in Texas,” she commented. “Both campuses are new to our portfolio, and the outlook is quite positive for continued enrollment development and strong student housing demand at these schools. We also expect to achieve economies of scale in operations at both properties.”
GrandMarc at University Village
The GrandMarc at University Village is located on nearly 12 acres at 3549 Iowa Ave., about five minutes from the UC Riverside campus and across the street from the University Village retail center. The complex consists of six, four-story stucco buildings. Suite configurations include one-, two- and three-bedroom layouts, each with its own separate bedroom and bath. Each fully furnished suite includes a patio or balcony, full-sized washer and dryer combos, laminate countertops and a full kitchen appliance package.
The upscale, gated property is one of only five purpose-built facilities serving UC Riverside and features a resort-style swimming pool and spa, outdoor grilling station and basketball court. A recently renovated club house offers study and meeting rooms, game room with billiards and table tennis, theater room, 24-hour fitness center and tanning beds. A UC Riverside Point-to-Point Shuttle and Riverside Transit Agency Trolley Stop at the property provides convenient transportation. Preiss will install cutting-edge technology improvements, including installing the highest rated WiFi speed and program improvements that make online leasing and rental payments easier and faster, as well as enhancing social media connectivity.
TPCO is in the initial phase of reviewing opportunities to further enhance the property’s exterior and interior spaces. The company also has implemented its proprietary management system that focuses on its student residents’ needs.
Gateway at Huntsville
The 160-unit student housing complex, comprising 416-bedrooms/bathrooms, is located at 5050 Sam Houston Avenue. Situated on an approximate 12-acre site, the property features six, four-story buildings, a swimming pool and basketball and volleyball courts.
TPCO will manage and oversee an extensive renovation of the property. The refurbishment program will commence this spring and includes upgrading more than half the units with new flooring, microwaves and furniture. All bedrooms will receive new mattresses, kitchen sinks and desk chairs. The clubhouse will be updated with new computer and fitness rooms and refreshed with new decor.
Technology will receive major attention with the installation of state-of-the-art, property-wide WiFi, as well as programs to enhance online leasing, online rental payments and social media capabilities. Extensive enhancements will be completed to the exterior, such as roof replacement, new HVAC units, patio furniture, grilling station, painting and landscaping. Located approximately one mile from campus, TPCO also will upgrade the Gateway at Huntsville’s shuttle and provide complementary service to and from campus.
Continued Growth Planned
“The acquisition market remains quite attractive. We are looking selectively at development opportunities, especially in markets with high barriers to new competition,” Preiss said. “Historically attractive financing with the potential for improved operating returns continues to attract considerable interest from both existing and new investment groups with whom we are working. An extensive national acquisition pipeline, along with development opportunities, point to a strong, upbeat 2017 for our company. It is difficult to project when deals will come to market and be consummated, but based on our current activity, the first half of 2017 is shaping up to be quite active.”