Aventura, Florida-based Centurion Property Group has acquired the Arba apartment complex in San Marcos, marking its latest investment in the burgeoning student housing market near Texas State University. The purchase underscores the continued investor interest in providing accommodations for the growing student population in the rapidly developing city.
Key Takeaways
- Centurion Property Group, a Florida investment firm, has purchased the 748-bed Arba apartment complex.
- The acquisition signifies continued investment in San Marcos’ student housing sector.
- Texas State University faces a long-term housing shortage, driving demand for off-campus options.
Strategic Acquisition in a Growing Market
Centurion Property Group, founded in 2019, specializes in acquiring and enhancing student housing properties near major universities across the southern and midwestern United States. The firm announced the acquisition of the 14-acre Arba complex, located on Aquarena Springs Drive, on its Instagram page, highlighting its expansion into "one of the fastest-growing university markets in the country."
The company views the 240-unit complex as having "strong historical performance" and "long-term value." Centurion has already deployed a team to the site to manage the transition, aiming to improve the resident experience and boost performance for the upcoming leasing cycle.
Financial Details and Market Context
While the exact purchase price remains undisclosed, a limited liability company associated with Centurion secured a $42.5 million loan from Ladder Capital Finance to facilitate the transaction. The Hays County Appraisal District had previously valued the property at $42.6 million.
Centurion’s existing portfolio includes student housing complexes in other university towns such as Lubbock, Texas; Gainesville, Florida; and Columbia, Missouri. The firm did not provide further details regarding its specific plans for the Arba complex.
San Marcos’s Booming Student Housing Landscape
The San Marcos student housing market is experiencing significant activity, driven by Texas State University’s projected enrollment growth and an ongoing shortage of on-campus housing. University enrollment is expected to increase from 37,250 in 2022 to approximately 40,000 by 2033.
In response to this demand, several real estate developers are investing in new student housing projects. An Austin developer is planning the $88.5 million McLain student apartment complex downtown, while another Illinois-based firm, Next Chapter Properties, intends to build a seven-story complex near the city’s courthouse square. The downtown area has seen the addition of at least three student complexes in the past decade, including Aspire San Marcos, The Pointe San Marcos, and Local Downtown.
Texas State University itself is also addressing the housing crunch by planning two 10-story dorm towers on campus, which will add a total of 1,504 beds.
Sources
- Florida firm buys student housing complex near Texas State campus, San Antonio Express-News.