Hawkins Way Capital and joint venture partner Varde Partners have acquired 81 E. 3rd St. in Manhattan’s East Village for $28 million. The off-market purchase adds an apartment-style student housing asset to their growing FOUND Study portfolio and gives the partnership greater exposure to one of New York City’s most established student and residential neighborhoods.
Key takeaways
- Hawkins Way Capital and Varde Partners purchased the property for $28 million.
- The East Village asset joins the partners’ FOUND Study student housing platform.
- Apartment-style units offer an alternative to traditional dormitory living.
- The property could potentially support conventional multifamily use over time.
The transaction reflects continued investor interest in urban student housing, particularly in neighborhoods near major universities where limited housing supply and strong rental demand can support long-term performance.
East Village location strengthens platform strategy
The property expands the joint venture’s presence in the East Village, a neighborhood known for its proximity to colleges and universities, transportation, restaurants, retail, and cultural attractions. Those characteristics have made the area a target for investors seeking well-located residential properties with multiple sources of demand.
Hawkins Way Managing Partner Ross Walker said the neighborhood’s student concentration, access to leading universities, and durable real estate fundamentals were key factors behind the acquisition. The purchase aligns with the firm’s broader strategy of acquiring urban student housing assets in locations positioned for sustained demand.
Apartment-style design offers flexibility
Unlike conventional dormitories, the property features apartment-style layouts intended to provide residents with a more independent living experience. The design may appeal to students seeking added privacy, residential amenities, and a setting that more closely resembles conventional multifamily housing.
The configuration also gives the owners flexibility beyond student occupancy. Depending on market conditions and future operating decisions, the property could potentially transition to or accommodate traditional multifamily uses, creating additional long-term value and exit options.
Acquisition grows FOUND Study portfolio
The East Village purchase represents a strategic addition to the FOUND Study platform, which focuses on student housing in major urban markets. By adding an asset in Manhattan, the partnership is increasing its exposure to a high-cost, supply-constrained housing market where proximity to educational institutions is a central competitive advantage.
The off-market nature of the deal also underscores the partners’ ability to pursue acquisitions outside broadly marketed sales processes. For investors, such transactions can provide access to properties with operational or redevelopment potential that may not be fully reflected in standard market offerings.
Broader implications for student housing investors
The acquisition highlights the growing overlap between student housing and conventional multifamily real estate. Properties that can serve both segments may offer owners greater resilience as enrollment patterns, rental preferences, and neighborhood demand evolve.
In Manhattan, where land and housing supply are limited, adaptable residential properties near universities may remain attractive to investors. Hawkins Way and Varde’s latest purchase positions the joint venture to benefit from both the immediate demand for student accommodations and the property’s longer-term flexibility.