Wednesday, September 14, 2016

Crain's: University Center "Superdorm" Looking for Buyers

We know the "rental" market has been hot for some time now.  Whether it's young professionals looking for quick access to the their jobs in the Loop or in this case, students seeking close proximity to their downtown classes, it's been impossible to not notice all the housing options popping up.

Crain's recently had an article about one of the biggest housing options for students - located in the Sloop at Congress and State - potentially being sold (behind a paywall):
Real estate investors that want to place a big bet on Chicago's downtown colleges now have their chance: by buying a 1,729-bed dorm in the South Loop.  
Twelve years after building the University Center student housing complex, three Chicago schools—Columbia College Chicago, DePaul University and Roosevelt University—have put the 18-story building at 525 S. State St. up for sale. Also known as the Superdorm, it's the biggest student housing complex in Chicago and one of the largest in the country.  
The schools have hired the Chicago office of CBRE to market the property amid a wave of dealmaking in the student housing market, which has evolved from a fragmented industry populated by smaller investors into one dominated by big national companies backed by institutional investors. Many investors like the sector because it's tied mainly to school enrollments, making it less vulnerable to the ups and downs of the economy and real estate market.  
The schools that own University Center still could keep the property and just refinance its debt, DePaul spokeswoman Carol Hughes wrote in an email. The property secures about $127 million in bonds.

Stay tuned to see what happens with this one.

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