The Scion Group, in partnership with Ares Real Estate funds, has acquired a significant four-community student housing portfolio from SCHENK+ for approximately $435 million. This exclusive off-market transaction includes 2,316 beds, strategically positioned to serve students from prestigious institutions such as the University of Georgia, the University of Tennessee, and Texas State University.
SCHENK+ skillfully developed three properties in this portfolio, showcasing innovative design and modern amenities, while the fourth underwent a thoughtful acquisition and repositioning process to enhance its value and appeal. Given Scion’s existing presence in all three markets, this acquisition is expected to facilitate a seamless integration of these newly acquired communities into Scion’s expansive national operating platform.
With this strategic move, along with another recently announced transaction, Scion anticipates managing nearly 117,000 beds spread across 187 communities in 92 diverse U.S. markets—a testament to its robust growth and operational capacity.
SCHENK+, known for its contributions to the student housing sector, has acquired and developed over 25,000 beds nationwide. Over the past four years, the company, along with its joint venture partners, has initiated more than $1 billion in new student housing developments, further solidifying its position as a significant player in the industry.
Nati Kiferbaum played a pivotal role in advising SCHENK+ on this transaction, helping ensure a smooth process for both parties.
KEY QUOTE:
“Jared Schenk is one of the true pioneers of off-campus student housing, and he has built an incredible portfolio of high-quality communities. This transaction provides a comprehensive exit for him and his investors. Scion is pleased to add another successful portfolio execution to our track record, and we are even more excited to welcome these communities to our portfolio.”
Robert Bronstein, Chief Executive Officer of The Scion Group
