Disposition of prime student housing asset near University of Kansas
BOCA RATON, Fla. (Oct. 16, 2019) ― Diversified, multi-strategy real estate and private equity investment firm Pebb Capital announced today it has completed the sale of The Rockland in Lawrence, Kan. to NB Private Capital (NBPC).
Kevin Larimer and Greg Gonzalez of Berkadia’s Student Housing team facilitated the sale. Berkadia’s Ed Kim and Jie Lee also arranged the financing on behalf of buyer Orange County-based NBPC. Kapp Morrison LLP served as counsel for Pebb Capital in the transaction.
The firm acquired the distressed asset for $16 million in November 2014, at which time Pebb Capital engaged in an extensive rehabilitation of the 17.0-acre property. This entailed renovating the 372 one- and two-bedroom units, totaling 647 beds and 313,912 square feet of rentable space. The Rockland offers furnished and unfurnished units, customizable furniture packages, high-speed internet, fully equipped kitchen, wood flooring, a full-sized washer and dryer and convenient trash valet service.
Pebb Capital also significantly upgraded The Rockland’s community amenities, adding additional clubhouse and outdoor recreational space. Improvements included an updated resort-style pool and hot tub; 24-Hour business center with free printing; 24-hour fitness center; common room with gaming station and pool table; complimentary tanning facilities; outdoor barbecue area with grilling area and fire pit; coffee bar; professional-sized sports field with AstroTurf; indoor and outdoor basketball courts; in addition to a dog park and playground.
“We were successful in the complete conversion of this distressed property, transforming it into a stabilized asset in a high-density, student-driven market,” said Todd Benson, managing director of development and asset management with Pebb Capital. “This sale allows for a renewed focus on other projects, such as our ground-up student housing development of 415W120 underway in New York City, as well as other strategic investment opportunities.”
“We were excited to work with Pebb to market this exceptional property,” said Larimer. “KU is the state’s largest university and has consistently strong enrollment. Pebb recognized the opportunity to transform this property, creating a student focused property that is positioned to remain in high demand and deliver exceptional returns well into the future.”
The property, built in 1986, is conveniently located 0.4 miles from the University of Kansas, the state’s top university, and is within a two-mile radius of national retailer, such as Target, Starbucks, CVS, Aldi, Kohl’s, T.J. Maxx and Ross Dress for Less. The Rockland also sits along University of Kansas’ bus route.
Since 2014, Pebb Capital has acquired more than 5,500 student housing beds, exceeding $300 million of transaction volume across over 12 universities in five states.