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The West 22 complex, situated on Cherokee Street near Kennesaw State University (KSU (NYSE:KSU)), was initially part of Heitman’s portfolio. The property has seen strong demand, with Tyson Huebner of Yardi Matrix reporting over 90% of beds pre-leased for the fall term, a projected rent growth of 7.1%, and an occupancy rate of around 96%.
Investcorp’s investment comes amid a broader trend of interest in Sun Belt student housing, which is known for its higher rent growth. The sector is seen as recession-proof and attracted $10 billion in investments in 2022 alone. Major deals included Blackstone (NYSE:BX)’s acquisition of American Campus (NYSE:ACC) Communities.
The strong demand for student housing is driven by an expected student population of 19 million. This has led to the construction of an additional 40,000 new beds in the fall. CBRE Group (NYSE:CBRE) anticipates a continued escalation in rent prices in the Southeast region, reflected in Investcorp’s strategic acquisition of West 22.
The sale marks the first student housing sale of the year in Cobb County, where Kennesaw is located.
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