PHOENIX, AZ – TSB Capital Advisors, the national leader in student housing and multifamily real estate advisory services, successfully arranged acquisition financing and advised on the joint venture partnership of Coastal Ridge Real Estate and Virtus Real Estate Capital for Nine20, a 775-bed student housing property located near Arizona State University in Tempe.
The deal marked the first student housing transaction for the Coastal Ridge and Virtus partnership.
“We were fortunate to run a really streamlined process and have multiple competitive financing options for this deal. Really, it’s a testament to everyone involved,” said Ian S. Bradley of TSB Capital Advisors. “It starts with Nine20, an incredibly well-performing asset in one of the best student housing markets in the country. Combine that with two first-class organizations like Coastal Ridge and Virtus coming together to make their first student housing deal, and we were able to secure single-source, flexible, 60% senior financing at low 200s over pricing. It shows that even in the current environment there are great deals to be made for astute sponsors.”
Constructed in 2018 and located next to the eastern edge of Arizona State University’s main campus, Nine20 entered the 2023-24 academic year fully leased for the fifth year in a row. The property is comprised of studio through four-bedroom units, featuring bed-to-bath parity throughout and spacious floor plans. Community amenities include a resort-style pool, two-story fitness center, poolside lounge with hammocks and grilling area, muscle beach, outdoor greenspace, and a private parking garage.
“We are thrilled to expand our relationship with Virtus, an existing partner who shares our conviction in the student housing sector,” said Rick Travis, Director of Investments at Coastal Ridge Real Estate. “Nine20 aligns with our investment strategy of owning well-located assets serving Tier 1 universities. We believe the property will not only benefit from the durable fundamentals of ASU, but also the strong demographics of the State of Arizona.”
“We are excited to announce the acquisition of Nine20 in partnership with Coastal Ridge,” added Christopher Kott, Managing Director at Virtus Real Estate. “Student housing fundamentals have never been stronger, and this asset exemplifies Virtus’ strategy of investing in institutional quality assets adjacent to campuses at high growth tier I public universities. We are proud to add this asset to our growing portfolio.”
Coastal Ridge is a vertically integrated real estate investment firm exclusively focused on for-rent residential strategies across the United States. Founded in 2013, Coastal Ridge is headquartered in Columbus, Ohio, with offices in Santa Barbara, California, Santa Rosa Beach, Florida, and Cincinnati, Ohio, as well as multi-disciplined employees in all regions of the country. Coastal Ridge has an established track record of identifying undervalued and underutilized properties across the risk spectrum and creating value through the application of extensive hands-on management over the real estate investment lifecycle. Coastal Ridge’s current portfolio is comprised of over 34,000 multifamily and student housing beds. Coastal Ridge is a Top 25 owner and manager of student housing in the U.S. and has been recognized as an Inc. 5000 Fastest-Growing Private Companies in America five times.
Virtus is a vertically integrated hybrid allocator-operator real estate manager exclusively focused on built space investments in cycle-resilient sectors, including healthcare, education, storage, and middle-income workforce housing. Founded in 2003, Virtus executes core, core-plus, value-add, and opportunistic strategies totaling approximately $6.0 billion in acquisitions on behalf of institutional investors, family offices, and financial institutions. The firm is privately held and is headquartered in Austin, Texas.
TSB Capital Advisors is the national leader in student housing and multifamily real estate advisory services, and has offices in Phoenix, Arizona (headquarters), and Paoli, Pennsylvania. Since its creation in 2009, TSB Capital Advisors has helped close over 450 deals and more than $55 billion in student housing and multifamily transactions.