$25M Rescues 588-Bed Asset From Foreclosure

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COLLEGE STATION, TX-JPI Lifestyle Communities LP has joined forces with GE Real Estate to acquire a 240-unit, 588-bed student housing complex from LaSalle Bank Corp. of Chicago. The joint venture has bought the Zone at Texas A&M out of foreclosure for $25 million.

The fully leased Zone is situated on 16.23 acres at 2001 Holleman Dr. West, about one mile of the campus. Frank Marro, managing director and chief information officer for GE Real Estate North America Equity in Norwalk, CT, points out student properties do require constant capital infusion, which could be part of the underlying reason for the foreclosure on the seven-year-old development. “The complex needed a little bit of rehab, which could have been a problem for the owner as well,” Marro says.

Marro tells GlobeSt.com that GE has an equity stake of $5.5 million in the acquisition and upcoming renovation. He says the partnership with Irving-based JPI is underwritten for a three- to five-year hold. He says the JV took out a loan to cover the balance of the acquisition cost.

Marro says GE liked the deal’s student housing aspect. “We’ve done about 20 deals with them [JPI] over the years and we have a great relationship with them,” he says, adding JPI’s Lifestyle Communities is looking for other student-housing properties in the city.

The Zone has one-, two-, three- and four-bedroom floor plans. Bedrooms range from 350 sf to 565 sf, with rents of $473 to $798 per month.