NEW YORK CITY — Eastman Residential and Triangle Capital Group have acquired a three-property portfolio of former student housing communities that will be converted to conventional multifamily assets. JLL arranged a $39.4 million three-year, floating rate acquisition loan. The portfolio consists of Grove at Cheney (192 units) in Cheney, Washington, Arch at Troy (192 units) in Troy, Alabama, and CB at Radford (222 units) in Radford, Virginia.
Each property was originally developed as off-campus student housing but has underperformed because of distance from their respective university campuses relative to competing student housing options, according to JLL. Eastman Residential’s business plan involves converting these properties to traditional multifamily assets targeting non-student professionals, with a goal of achieving more than 90 percent non-student occupancy through renovations and rebranding.