Officials of The Preiss Company (TPCO), one of the nation’s largest, privately-held, student housing owner-operators, in a joint venture with TH Real Estate, an affiliate of Nuveen, the investment management arm of TIAA, one of the world’s largest real estate investment managers, today announced the acquisition of the 450-bed student housing complex The Forum at Sam Houston. Located at 3019 Sam Houston Ave., in Huntsville, Texas, the garden-style community on nearly 12 acres is less than a mile from Sam Houston State University.
The property will begin a substantial renovation this fall, including upgrades to the clubhouse, as well as exterior and interior painting. Units will receive new furniture, flooring and kitchen backsplashes. TPCO will manage the property and oversee the renovation.
“This is our second joint venture acquisition with TH Real Estate in the past two months, and we seek other opportunities to build on our relationship with them,” said Donna Preiss, founder and CEO, TPCO. “We believe the renovation, new management and energy we bring to The Forum at Sam Houston will allow us to increase occupancy for the 2018/2019 school year by as much as 10 percent above current levels with a target in the mid- to high-90 percent leasing range.”
Built in 2011, the property features some of the markets’ largest units in studio, one-, two- and three-bedroom floor plans. All units include private bedrooms and bathrooms, as well as walk-in closets. The gated community features a resort-style swimming pool, basketball court, sand volleyball court and 24-hour clubhouse, cyber cafe and fitness center. An outdoor lounge with fireplace and two pet parks round out amenities.
The property is within easy biking distance to all university classrooms and athletic facilities, as well as a large offering of nearby retail and restaurant outlets. In addition, the property provides private bus service to and from campus.
“We are well versed in this market, having acquired a property in Huntsville with another joint venture partner last year, which is performing quite well,” Preiss said. “Sam Houston State University’s enrollment has enjoyed an average of 2.7 percent annual expansion since 2007, and today boasts more than 20,000 students, with strong growth expected to continue. The supply/demand dynamics for this market are quite positive.
“Based on our current acquisition pipeline, we expect the second half to be much more active than the first half,” she noted. “We remain quite positive on the outlook for the industry, especially in our acquisition profiles of newer, well performing properties; upgrade opportunities, like the Forum at Sam Houston, and deep turnaround/repositioning situations for properties 10 years and older.”