Houston-based The Dinerstein Companies has sold Sterling Highlander, a 658-bed, 216-unit student housing community located at 3080 Iowa Avenue in Riverside, California, according to a release from a representative of CBRE. SoCal Real Estate reached out to the rep for the price, but it was unavailable.
The statement says the pedestrian student-housing complex comprises three four-story buildings and a clubhouse, totaling 230,961 square feet of rentable space. The property offers a complete contemporary furniture package in each unit and a pool deck with a resort-style swimming pool. Additionally, the release says, the units include 9-foot ceilings, stained or concrete flooring in wet areas, and a 42-inch flat screen TV with Apple TV.
According to the source, CBRE National Student Housing’s Jaclyn Fitts, William Vonderfecht, and Casey Schaefer, along with CBRE Inland Empire multifamily specialist Cray Carlson, arranged the transaction. Ben Roelke and Ian Walker with CBRE’s Debt & Structured Finance team secured long-term financing on behalf of the buyer. The statement says the 10-year, fixed-rate loan was provided through CBRE’s Fannie Mae DUS program, CBRE Multifamily Capital Inc., and features a sub-4.5 percent interest rate and full-term interest-only payments.
Fitts, director of National Student Housing at CBRE, is quoted in the release as saying, “Sterling Highlander offered investors the rare opportunity to acquire an institutional, LEED-Gold-Certified student-housing asset in California.” He adds that the property fits with the University of California, Riverside’s planned growth of over 6,700 students by 2025, which “resulted in a highly competitive marketing process.”
CBRE reports that the Inland Empire is a thriving student-housing and multifamily market, with more than 96 percent occupancy and that demand for rental property in the Inland Empire is likely to stay strong. It also says the area has one of the fastest-growing populations in the country, according to recent estimates from an analysis by the U.S. Census Bureau. In addition, CBRE reports that Riverside County ranked third among all counties nationwide for population growth last year, adding 36,744 residents, up 1.5 percent from the prior year.
The student-housing sector has some healthy fundamentals supported by robust student enrollment. As SoCal Real Estate reported in October, Fred Pierce, president and CEO of Pierce Education Properties, told us, “Enrollments at major universities nationwide continue to increase at a steady and healthy rate, with fall 2018 enrollments at the Axiometrics 175 (AXIO 175) universities forecasted at 1 percent higher than fall 2017.”