Institutional Demand Drives $204.75M Sale of Prime San Jose Student Housing
Event summary
- Institutional Property Advisors (IPA), a Marcus & Millichap division, brokered the $204.75M sale of The Grad San Jose, a 1,035-bed student housing property near San Jose State University.
- The property, completed in 2020, was 100% occupied for the second consecutive leasing season.
- The sale involved sellers AMCAL, Swenson, and Tikehau Capital, and buyers Coastal Ridge Real Estate and Brookfield in a joint venture.
- The Grad features modern amenities including a resort-style pool, fitness center, and study lounges, catering to high demand in a supply-constrained market.
The big picture
The sale underscores the robust appetite for institutional-grade student housing, particularly near large universities with growing enrollments. With San Jose State University's enrollment nearing 41,000 students, properties like The Grad benefit from deep demand and limited new supply, making them attractive to capital. The transaction also highlights the strategic value of purpose-built, amenity-rich housing in high-barrier-to-entry markets.
What we're watching
- Institutional Demand
- How sustained institutional demand for student housing will affect valuations in supply-constrained markets like Silicon Valley.
- Operational Upside
- Whether the new owners can capitalize on The Grad's amenity-rich positioning to drive further operational gains.
- Market Dynamics
- The pace at which similar high-quality, near-campus student housing assets will trade in Northern California.
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