Tampa student housing sells for $45 million

A New York-based investment firm has acquired the 4050 Lofts complex in Tampa for $45 million, the latest in a wave of institutional student housing deals nationwide.

Investcorp, which specializes in “alternative investment products” and has invested in more than $11 billion in real estate in the past decade, bought the complex from an affiliate of Campus Advantage, of Austin, Texas.

The 4050 Rocky Circle Road complex is blocks away from the University of South Florida's Tampa campus.

The series of three- and four-bedroom apartments within 4050 Lofts rent for between $645 and $705 per month, according to the complex's website.

4050 Lofts apartments are fully furnished, and amenities include an on-site fitness center, cyber cafe and a swimming pool.

Investcorp officials declined to comment on the purchase from Campus Advantage, which in turn bought the lofts in late 2010 for $41.5 million.

Investcorp's purchase comes as student housing has emerged as one of the hottest asset classes in the U.S.

In the first five months of this year, for instance, student housing sales were up 43% compared with the same period in 2015, to $3 billion. In 2014, student housing transactions totaled $3.2 billion for the entire year, according to statistics from Real Capital Analytics.

Institutions have been drawn to student housing because the asset class typically offers predictable yields. At the same time, an influx of millennial students desiring upscale residences with modern amenities also has increased in recent years.