East To West Capital Sell Student Housing Portfolio Serving Cornell University in Ithaca to Harrison Street
East To West Capital Sell Student Housing Portfolio Serving Cornell University in Ithaca to Harrison Street
MIAMI (June 17, 2021)—Ithaca-based Visum Development Group LLC and its equity partners, including UK real estate private equity firm East To West Capital, today announced they have sold The Lux and The Lofts, two top-tier student housing complexes comprised of 281 beds located next to Cornell University in Ithaca, NY to Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets.
“Ithaca, New York and Cornell University represent one of the most attractive student housing markets in the country from a supply and demand perspective,” said Andrea Cassandro, Managing Partner, East To West Capital. “This market characteristic is made possible by the great demand and the barriers to entry that exist for new development.”
Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer, said, “These are well managed, highly desirable student accommodations serving one of the nation’s most prestigious universities in Cornell. Ithaca is a phenomenal, growing college town but access to new developments is scarce. We are pleased to have acquired these assets and support these exceptional student accommodations designed to facilitate and enhance the university experience for Cornell students.”
The Lux (pictured above left), located at 112-114 Summit Avenue in Ithaca, is a 207-bed development completed in 2018. The Lux consists of two, four-story buildings. The complex offers 10 different floorplans ranging from one- to five-bedroom units. The Lofts (pictured above right), located at 201 College Avenue in Ithaca, is a 74-bed development completed in 2017. The Lofts consist of one five-story building. The complex offers four different floorplans ranging from one- to four-bedroom units. At the time of acquisition, each development maintained a 95 percent occupancy rate.
“We’ve overachieved the investment goals that have guided the initial development and ongoing management of these complexes,” Cassandro added.
Cassandro attributes that to the development partner, Todd Fox of Visum Development Group. Fox, based in Ithaca, has demonstrated impressive handling of local municipal approvals and expert execution with on-time and on-budget construction. Both buildings have overperformed the initial business plan.
“With interest rates remaining low and the impacts of COVID more fully understood, now was an appropriate time to sell,” stated Fox. “This asset has performed well since we developed it and should remain one of the premier student housing properties in Ithaca.” Both The Lux and The Lofts offer fully furnished apartments equipped with an eat-in kitchen with bar stools, stainless steel appliances, quartz countertops, glass tile backsplashes, a microwave and dishwasher. Units also feature a stackable washer/dryer ensemble and mounted smart TV with Roku. Heat, air-conditioning, and Wi-Fi are included. Some units offer private balconies.
Community amenities at The Lux, which is located in the heart of Collegetown, include a rooftop terrace with panoramic skyline vistas, outdoor fire pit lounge, fitness center, sauna and steam room, indoor bicycle storage, resident lounge/smart TV, game room, package rooms, and study rooms. Community amenities at The Lofts include a media lounge, luxury fitness center, and controlled access.
J. Ryan Lang, Vice Chairman, and Ben Harkrider, Transaction Manager, of the Multifamily Capital Markets division of NEWMARK, were the exclusive marketing representatives for Visum Development and East To West Capital. NEWMARK also represented Harrison Street in this off-market transaction.
East To West Capital is an independent private equity group specializing in real estate investments in the U.S. and Europe. East To West Capital is privately owned and was founded by and is managed on behalf of the interests of a high net worth family office. The firm invests across all real estate asset classes, primarily through new build construction with experienced local partners. East To West Capital invests where strong macro-economic factors—job creation, education and population growth—exist and are coupled with relative value and future capital upside potential.
Visum Development Group is an Ithaca based real estate development company specializing in new construction and redevelopment of student, residential and commercial properties in select high barrier to entry markets across the US.
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London and Toronto, the firm has more than 190-employees and approximately $33 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street has been awarded Best Places to Work by Pensions & Investments for the last seven consecutive years and was named 2020 Global Alternatives Investor of the Year by PERE. For more information, please visit www.harrisonst.com.