ASU HOUSING COMPLEX SOLD TO PIERCE EDUCATION PROPERTIES VENTURE FOR $52 MILLION

Published:   March 18, 2011
Volume:   XVII    Number:   10

Tempe – A venture formed by Pierce Education Properties in San Diego, Calif. (Fredick Pierce, pres.) and Partners Group in Zug, Switzerland (Steffen Meister, CEO) paid $52 million ($212,245 per unit) to acquire the 245-unit Block 1949 student housing community located adjacent to Arizona State University at 1949 E. University Drive in Tempe. The seller was JLB Tempe LLC, a company formed by JLB Partners L.P. in Irving, Tex. (James Bosler, chairman). Public records show PEP – PG Tempe LLC (formed by Pierce Education Properties and Partners Group) acquired the Block 1949 complex with a $13.5 million down payment and a $38.5 million loan from German American Capital Corp. in New York City, N.Y. The fully furnished rentals feature efficiency, two-, three- and four-bedroom units ranging from 482 sq. ft. to 1,792 sq. ft. In all, there are 640 beds in the project. Built in 2010, the gated Block 1949 community has a wide array of amenities. The investment is the first in Arizona for Pierce Education Properties and Partners Group. The company presently owns and manages a portfolio of 5,600 beds of off-campus student housing. The group of properties is owned in joint ventures with institutional partners and high net worth individuals. PEP provides asset management and property management services for the student housing investments. Partners Group is a global private markets investment management firm with more than $20 billion (Euro) in investment programs.