COLONY CAPITAL AND R.W. SELBY & COMPANY ANNOUNCE PURCHASE OF UNIVERSITY OF SOUTHERN CALIFORNIA ADJACENT STUDENT HOUSING PROPERTIES FROM WESTAR ASSOCIATES FOR $98 MILLION
Los Angeles, February 15, 2011– Funds managed by an affiliate of Colony Capital, LLC, a private, international investment firm, and R.W. Selby & Company, Inc., a leading multifamily investment and management firm in Southern California, (together, the “Buyer”) have completed the acquisition of a portfolio of student housing properties adjacent to the University of Southern California from Westar Associates, a firm that acquires, manages and develops shopping centers and apartments. The purchase price was $98 million, including the assumption of debt.
The portfolio includes seven properties consisting of 223 units providing a total 836 beds of student housing.
Six of the properties are conveniently located one block north of campus adjacent to the Shrine Auditorium, which the Buyer plans to re-brand together as the “Shrine Collection”. Tuscany, the seventh property located one block from the southeastern corner of campus, is a Class “A” mixed-use development constructed in 2006 which enjoys the reputation of being the premiere private housing choice for USC students, and features a full array of resort-style amenities including 11,761 sq ft of ground floor retail that is 100% leased to such major national chains as Coffee Bean, Chipotle and Chick-fil-A, among others.
R.W. Selby & Co. will manage the student housing portfolio. Selby & Co. has a long and successful track record of acquiring and repositioning numerous student housing projects in the Westwood area adjacent to UCLA. Westar Associates will continue to manage the retail space and retain an interest in the project.
The Buyer has also committed additional funds to complete various upgrades and capital improvements within the portfolio.
“This transaction represents a unique opportunity to own some of the best quality student housing product at the doorstep of one of the finest universities in the country, which continues to add student enrollment while its housing supply remains constrained. We are excited to partner with the highly experienced operator R.W. Selby & Co.,” said Thomas Barrack, Jr., Colony’s founder, Chairman and Chief Executive Officer.
Added Steven K. Fowlkes, R.W. Selby & Co.’s President, “We are also proud to partner with Colony to invest in and manage these attractive student housing properties near USC. We also look forward to working closely with the University while adding significant value to these assets by employing our more than 30 years of experience managing and developing student housing properties.”