Salmanson Capital acquires student housing portfolio-$15.23 million

Salmanson Capital, LLC, a New York-based real estate firm specializing in the acquisition and repositioning of student housing assets throughout the U.S., recently acquired an off-campus student housing portfolio adjacent to Lehigh University for $15.23 million. The scattered-site portfolio purchased in an off-market transaction includes a mix of apartment buildings and townhouses totaling 108 units with 394 beds across 50 properties, all of which are within blocks of campus. The 10-year CMBS fixed-rate loan with Citibank was arranged by Jason Krane of Ackman Ziff. The acquisition brings Salmanson Capital's total portfolio to 452 units and 1,336 beds in three college towns. The portfolio was acquired from a local owner and will be managed by the Salmanson Capital affiliate Campus Hill Management. The properties will be rebranded Campus Hill Apartments, the first expansion of the Campus Hill brand outside of Syracuse University. The properties were already the most sought-after due to their locations; however, this will be enhanced as Salmanson Capital will commence a $2 million capital improvement plan to include complete kitchen and bathroom renovations of all units. Kitchens will feature stainless steel appliances, and baths will include high-end fixtures and finishes. Units will also receive new furniture and technology upgrades, and residents will enjoy 24-7 professional management. "The apartment buildings and townhouses we acquired at Lehigh already possess the best locations in the marketplace. By renovating all of the kitchens and bathrooms with high-end finishes, upgrading the management services and adding technological upgrades, we will be able to offer the students at Lehigh University a very high quality housing option that did not exist in the market before," said David E. Salmanson, president of Salmanson Capital. "We are excited about expanding the Campus Hill brand from Syracuse University to Lehigh. We are confident students will find that Campus Hill Apartments offers a coveted, safe and upscale place to live, complete with a management team the students and their parents can depend on." Salmanson Capital has also recently completed a $30,750,000 refinancing of its 232-apartment, 614-bed Syracuse University student housing portfolio. Rodney Shenman of KeyBank helped to arrange the 10-year fixed Freddie Mac loan. The portfolio, Campus Hill Apartments, was acquired in 2007 for $26,000,000. Since its acquisition, Salmanson Capital has enhanced its value through kitchen and bathroom renovations as well as technological and management upgrades, and has acquired additional properties in the market bringing its total Syracuse portfolio to over 700 beds. Salmanson Capital is actively seeking to acquire additional well-located off-campus student housing assets.