Scion Group, Ares Management Buy U.S. Student Housing Portfolio for $910M
It’s the biggest student housing deal in the U.S. in 2026 so far, according to seller Harrison Street Asset Management
By Isabelle Durso and Brian Pascus May 20, 2026 11:38 am
reprints
The biggest student housing portfolio deal of the year is now on the books.
Student housing owner and operator the Scion Group and private equity giant Ares Management have acquired a 12-property housing portfolio in the U.S. for $910 million, according to a Wednesday announcement from the seller.
Harrison Street Asset Management (HSAM), an investment management firm with $109 billion in assets under management, sold the portfolio, which includes 7,578 beds across 10 states and 12 universities, including Arizona State University, Auburn University in Alabama and the University of Florida.
Other universities part of the portfolio were the University of Notre Dame in Indiana, Ohio State University and James Madison University in Virginia, according to a Wednesday announcement from the buyers. The other universities involved in the portfolio were not disclosed.
HSAM said in its announcement that it sold the portfolio as part of its strategy to exit “diversified portfolios that represent compelling scaling opportunities for institutional buyers.”
The deal is also the largest student housing portfolio sale completed in the U.S. so far in 2026, according to HSAM. Walker & Dunlop brokered the financing for the deal, which was led by BMO.
“The transaction underscores the continued depth of institutional demand for student housing exposure, driven by durable fundamentals, constrained new supply and strong enrollment trends at leading universities,” Christopher Merrill, co-founder and global CEO at HSAM, said in a statement. “Building on our decades of experience in the sector, we will continue to invest in high-quality student housing properties near leading universities, while evaluating strategic portfolio sales that deliver compelling outcomes for our investors.”
The deal also marks the first acquisition for the newly formed team of Scion and Ares, which announced Wednesday the formation of a joint venture to invest in off-campus student housing in the U.S.
“This transaction represents important milestones for Scion,” Robert Bronstein, CEO of Scion, said in a statement. “We are beginning a partnership with Ares, one of the leading asset management firms globally. … This sector continues to demonstrate resilient demand characteristics, and we are pleased to expand our platform alongside Ares.”
Andrew Holm, head of U.S. diversified equity for Ares, added in a statement that the transaction underscores the firm’s ability to “execute on large, complex opportunities through [its] scale, sector experience and operating relationships.”
The acquisition isn’t HSAM and Scion’s first deal together. Scion and an undisclosed buyer purchased another student housing portfolio from HSAM in November 2024 for $893 million, as Commercial Observer previously reported. That portfolio included 14 student housing assets near 13 different universities, including the University of Arkansas, Texas A&M University and the University of Missouri.
Since its founding in 2005, HSAM has invested more than $24 billion across 431 student housing properties, totaling more than 237,000 beds in North America and Europe. The Scion Group, meanwhile, now has a portfolio totaling more than 105,000 beds, and Ares has approximately $117 billion in AUM as of March 2026.
Isabelle Durso can be reached at idurso@commercialobserver.com, while Brian Pascus can be reached at bpascus@commercialobserver.com.
