The Preiss Company Continues Strong 2017 First Half with Acquisition of Two Student Housing Communities, Builds on Record 2016 with 5 Deals YTD
Friday June 09, 2017
Cabana Beach San Marcos, Cabana Beach Gainesville to Undergo Upgrades, Repositioning
GAINESVILLE, Fla. & SAN MARCOS, Texas & RALEIGH, N.C.--(BUSINESS WIRE)--Officials of The Preiss Company (TPCO), ranked the nation’s fifth largest, privately-held, student housing owner-operator, today announced that it continues to build on its record 2016 growth with the acquisition of Cabana Beach Gainesville and Cabana Beach San Marcos, two student housing communities totaling a combined 2,232 beds for an undisclosed amount. The two communities, serving the University of Florida and Texas State respectively, will be renovated and repositioned in their respective markets.
“These acquisitions with a new joint venture partner play to another one of our core strengths: adding value through strategic upgrades and repositioning,” said Donna Preiss, founder and CEO, The Preiss Company. “TPCO has a proven record in both in-depth renovation and development. We’ve overseen more than $30 million in construction/upgrades over the past three years. Only a handful of student housing owner/operators have the extensive experience and expertise in this sector of our business.”
Cabana Beach San Marcos
Located just off the Texas State University campus, the 744-bed Cabana Beach San Marcos sits on 19 acres and provides the latest in student resources. Community amenities include a swimming pool, sand volleyball court, dog park, regulation-sized basketball court, computer lab and study rooms.
All units are fully furnished with private bedrooms and private bathrooms. Additionally, units come with a full kitchen with oven, refrigerator, dishwasher, microwave, full-size washer and dryer, private balconies/patios, as well as wood-style floors in the common areas.
TPCO plans to upgrade 114 units, totaling 306 beds, and to renovate the community’s clubhouse. “The Cabana Beach San Marcos is a prime value-add addition to our continually growing student housing portfolio,” Preiss noted. “We secured the property at below replacement cost, and the market has seen approximately five percent rent growth in recent years, making this a particularly attractive investment.”
Cabana Beach Gainesville
Situated roughly a mile from the campus of the University of Florida, the 1,488-bed Cabana Beach Gainesville is housed on 55 acres. Each fully equipped apartment unit provides a flat-screen television, coffee and end tables, sofa, couch, dining table and fully furnished private bedrooms and bathrooms. Rooms also provide full-sized washer and dryer, alarm systems and private balconies/patios. Community amenities include a beach clubhouse, resort-style waterfall pool, sandy beach tanning zone, 24-hour fitness center, sand volley ball courts, grilling stations, computer lab, study rooms and a gated entrance. The pet-friendly community also hosts weekly resident events.
TPCO is planning to renovate common areas, as well as units, and expects to makeover the building exteriors with power washing and/or new paint, new fencing, upgraded gutters and new window screens.
“The Cabana Beach Gainesville will benefit from capital infusion and a renewed focus on rental growth,” Preiss stated. "TPCO's business plan is to double down in markets with solid fundamentals and in which the company already has a successful presence. Both of these assets are in alignment with that plan. We currently are in both markets with assets that have experienced 100 percent occupancy, as well as above average rental rate growth.
“We enjoyed record growth last year and are on target to challenge that record in 2017. Our national pipeline remains full, and we continue to have an appetite for further growth with a continued positive outlook for the industry,” Preiss concluded. “TPCO targets markets in the 5 largest student housing states, and Texas and Florida are the two largest student housing states in the U.S. With these two purchases, TPCO will own and/or manage approximately 4,500 beds in Florida and more than 5,300 beds in Texas.”