A Chicago real estate company has purchased an LSU-area apartment complex for $32.5 million.
A business unit of The Scion Group bought University Edge in a deal that was filed Tuesday with the East Baton Rouge Clerk of Court’s office. The seller was a unit of Hallmark Campus Communities, a Columbus, Ohio, company that developed the complex.
University Edge is north of LSU at the intersection of West McKinley and Iowa streets. The 147-unit complex, which opened for the fall 2013 semester, has 472 student beds. The complex has a mix of two-, three- and four-bedroom units, all with amenities such as washers and dryers, hardwood floors and vaulted ceilings.
Eric Bronstein, an executive vice president with Scion, said the company had been looking to get into the LSU market for several years. Scion has apartments near 18 other college campuses, including Georgia, South Carolina, Clemson and Texas A&M.
Because University Edge is so new, Bronstein said no significant physical changes are planned to the complex. There will be some minor upgrades to the clubhouse areas. Scion has taken over the management of the complex, something Hallmark had farmed out to a third-party group. The complex will be rebranded with a new name in time for the fall semester.
Gregg Cordaro, with Berkadia Louisiana multi-family advisers, brokered the deal and represented the buyers and the sellers, along with Kevin Larimer, the national student housing director for Berkadia.
Cordaro said the sale broke down to $221,088 per unit, the highest price paid per unit for a student housing development in Louisiana.
Several factors contributed to the sale price, Cordaro said, such as rising enrollment at LSU and big new employment centers coming to the area, such as IBM and the Water Campus. University Edge is fully leased and has a waiting list of people wanting to move in, he said.
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