AUSTIN, Texas, Dec. 19, 2012 /PRNewswire/ -- Campus Advantage, a leading student housing company, has announced a $75 million joint venture with the California State Teachers' Retirement System (CalSTRS), which is one of the nation's largest state pension funds. CalSTRS' investment manager for its investment in the venture is Heitman LLC.
Under the partnership, Campus Advantage will invest $75 million in student housing properties on behalf of CalSTRS. These properties are located near universities that are at or near record enrollment levels, creating a high demand for housing alternatives. The joint venture seeks to identify and acquire approximately $150 million in high-quality student housing properties across the country over the next two years.
This is the second round of investments CalSTRS has made with Campus Advantage. The California pension fund first teamed with Campus Advantage in a $100 million partnership back in 2007, which was fully placed in December 2011. The first venture successfully acquired seven properties totaling more than $193 million in student housing encompassing 4,749 beds. The portfolio is currently 97.2 percent occupied and achieved effective rent growth of 4.1 percent for the 2012/13 Academic Year."Student housing is an industry that is seeing tremendous growth and offers tremendous investment opportunities," said Mike Peter, president and CEO of Campus Advantage. "Our partnership with CalSTRS is very important to us, and we are excited that we are seeing this relationship grow." CalSTRS is the largest teachers' pension fund and the second largest public pension fund in the United States. Serving educators teaching at public schools, CalSTRS' portfolio is valued at $155.4 billion. Its investment advisor, Heitman, is headquartered in Chicago and it manages approximately $26 billion in real estate investments in North America, Europe, and Asia-Pacific. Campus Advantage currently manages more than 25,000 beds at 48 communities in 20 states.