Fortress Investment has acquired University Village, a 600-bed US student housing community in North Carolina, for an undisclosed sum.
The acquisition builds on Fortress Investment’s expansion into the retail investor market and core-plus real estate. In March, the manager launched Fortress Real Estate Exchange.
The transaction marks the second acquisition for the manager’s 1031 exchange platform, which offers advisers and private clients access to institutional real estate investments via Delaware Statutory Trusts (DSTs).
As reported by IPE Real Assets, the opportunistic real estate and credit on behalf of institutional investors, but joins managers such as Blackstone and Brookfield in utilising DST structures to tap individual capital seeking capital gains tax deferrals under Section 1031 of the US Internal Revenue Code.
The recently acquired 203-unit asset serves students at the University of North Carolina at Greensboro (UNC Greensboro) and North Carolina A&T State University (NC A&T).
Eli Edwards, US head of real estate equity at Fortress Investment, said: “University Village’s near 100% historical and in-place occupancy shows it has a longstanding appeal for students in Greensboro, and we believe that the increase in student enrollments at both UNC and NC A&T will support strong performance in the years ahead.
“Against this backdrop, we are confident this is a great acquisition for the Fortress Real Estate Exchange platform, and we look forward to bringing Fortress’s real estate operating and asset-management experience to manage the property for the benefit of student residents and investors alike.”
The platform will initially target investments in senior housing, student housing and multifamily properties.
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