Arcapita exits US student housing investment

Manama, May 31 (BNA): Arcapita Group Holdings, the global alternative investment firm, along with partner Stamford, CT Director of Investment Realco Capital Partners (“RCP”), today announced its exit from Quarry Trail, a student housing community serving the University of Tennessee It is a first-tier public university in the United States.

Quarry Trail was acquired by Nitya Capital LLC, a US-based real estate investment firm that owns and manages approximately $2 billion in real estate assets across the United States.

Arcapita’s student housing strategy, which targets public universities, has proven resilient despite the pandemic.

During the waiting period, Quarry Trail has seen strong occupancy levels and rental growth driven by pent-up demand for an on-campus experience from both local and international students.

“We are very pleased with the performance of our investment in student housing,” said Brian Hebb, managing director of American Real Estate.

“Public Tier 1 universities in the US are seeing growing enrollment and housing needs, while the allocation of institutional capital toward the sector increases. We continue to view student housing positively as a component of our focus on rental housing in the US.”

After investing in January 2020, Arcapita and RCP implemented their business plan driven by comprehensive amenities, unit renovations and enhanced marketing initiatives that ensured occupancy was maintained near 100%, despite the challenges posed by the pandemic.

Net operating income has grown at a compound annual growth rate of 11.7% since acquisition, and the expected five-year internal rate of return was achieved in a two-year period.

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Arcapita’s management team has completed more than $15 billion in real estate transactions in the United States over the past 25 years.

The company’s US real estate investment strategy has primarily focused on acquiring high-quality income-generating real estate assets in attractive locations backed by strong macroeconomic fundamentals.

Currently, Arcapita has investments in various real estate sectors, including in the rental housing and industrial sectors.

Realco Capital Partners (RCP) based in Stamford, CT is an investment manager focused on student housing.

Since 2009, RCP has purchased and sold 2.7mm square feet of student housing at major universities in the United States.

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