The Chicago-based investment firm Harrison Street Real Estate Capital and Los Angeles-based crowdfunding company RealtyMogul.com raised a total of $37.5 million on behalf of Atlanta-based St. Clair Holdings, Commercial Observer has learned.
Student Quarters, the student housing investment arm of St. Clair, is using the funds to acquire a three-property student-housing portfolio.
The capital that Harrison Street and RealtyMogul.com raised will also fund renovations of the properties, located at The University of Carolina at Greensboro, in Greensboro, N.C. and East Tennessee State University in Johnson City, Tenn.
“We are excited to partner with Student Quarters to offer our investors the first of potentially many investments in the student housing space,” Jilliene Helman, chief executive officer of RealtyMogul.com, said in prepared remarks. “Providing our investors the opportunity to participate in a deal of this caliber is something we are extremely proud of.”
The three properties hold a total of 1,108 beds and are currently 95 percent leased.
Student Quarters will handle the purchase of the portfolio and will implement a capital improvement plan, while the national student housing manager and developer Peak Campus will manage the portfolio.
“We were thrilled with RealtyMogul’s team and the closing of our first deal together,” said Andy Feinour, president of Student Quarters. “They acted as a true partner, and were really there for us with flexibility and speed. We look forward to working with them again in the near future.”
A representative for Harrison Street did not immediately respond to press inquiries.