$89.7 Million Investcorp Acquisition of the West 22 Grabs Headlines

The student housing industry is going gaga over the acquisition of the West 22 student housing complex, Kennesaw, by Investcorp. This latest news has marked the entry of the Bahrain-based investment group in Atlanta. The deal includes an acquisition of an 850-bed PBSA complex from Vesper Holdings for a whooping sum of $89.7 million. Metlife partially financed the deal with a mortgage amount of $61.7 million, which is to be released in the year 2026. The complex is an important part of the student housing in Kennesaw, Atlanta and is located at Cherokee Street, near Kennesaw State University. 

As per the reports by Tyson Huebner, Yardi Matrix, the West 22 has been in high demand, with a pre-release of 90% of beds during the fall intake. The projection of the growth rate of rent is at 7.1%, and the occupancy stands at an incredible 96%. 

The ongoing trend of investors inkling towards the sunbelt when it comes to investing in the PBSA market seemingly impacted the corp’s decision. The student housing rent in the region is projected to keep growing, providing an avenue for good returns on investment. The latest PBSA market news suggests a recession-proof investment in the student housing industry. The positive growth in the student housing market in the USA is reflected by the $10 million in investments the sector attracted in 2022. One of the eye-catching deals is the acquisition of American Campus Communities by Blackstone.

The ever-growing demand for student housing is tied to the enormous growth in the student population, which is expected to reach 19 million. The construction of 40,000 student beds in the fall was a result of the estimated growth in the student community. According to the CBRE group, “The rise in rent in the south-eastern region will continue and reflect in Investcorp acquiring West 22.”  

The deal has become the first student housing sale of 2023 in Cobb County, the county for Kennesaw. 

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