New York City-based Vesper Holdings continues to expand its student housing portfolio with the acquisition of Gateway Lofts Lansing, a 181-unit luxury student housing property located near Michigan State University in Lansing, Mich. Vesper has completed 20 student housing transactions totaling more than $1 billion over the past 15 months.
The price and seller of the asset were not disclosed. Kevin Larimer, senior managing director of Berkadia’s student housing team, represented the seller. Aaron Moll, managing director & head of student housing mortgage at Berkadia, handled financing of the acquisition for Vesper. Details about the financing were not disclosed.
According to Yardi Research Data, the most recent owner was Continental Development Ventures, a Columbus, Ohio-based national developer of mixed-use, student and multifamily housing properties. It was built as part of CDV’s Red Cedar Development, a mixed-use project in Lansing. CDV obtained a $26.5 million loan from PNC Bank in December 2022, the same source shows. The property was 93.9 percent occupied at the time of the sale.
Completed in 2022, the five-story building is located on 2.36 acres at 3140 E. Michigan Ave. It is situated less than a half-mile from Michigan State University, providing direct pedestrian access to the campus.
Gateway Lofts Lansing has a mix of studio, one- and two-bedroom apartments. There are 22 studios with 446 square feet. The one-bedroom units range from 593 to 605 square feet and the two-bedroom apartments range from 1,057 to 1,194 square feet. Rents range from $1,487 to $2,255, with an average of $1,711, according to Yardi Research Data.
Apartments have wood-style plank flooring, granite countertops with bar seating, stainless steel appliances, walk-in closets, pendant lighting and in-unit washers and dryers. Community amenities include a resident lounge with billiards, fitness center, business center, conference rooms, package lockers and bike storage on each floor. The property also has ground-floor retail space.
Capital improvements near campus
Isaac Sitt, co-founder and co-CEO of Vesper, said in prepared remarks that the company is committed to acquiring high-quality student housing assets in pedestrian-to-campus locations within top-tier markets. He expects Vesper to remain extremely active in the coming months as the firm seeks to take advantage of pricing dislocations due to the higher interest rate environment.
Three weeks ago, Vesper and funds managed by Fortress Investment Group recapitalized Hawks Pointe, a student housing community located within walking distance of the University of Kansas in Lawrence, Kan. Hawks Pointe is a 248-unit, 463-bed property that features a mix of studio, garden-style, loft and townhouse apartments. Vesper and Fortress plan to make capital improvements, including clubhouse and amenity upgrades, as well as exterior and interior enhancements. Hawks Pointe is managed by Vesper’s subsidiary property management company, CLS Living, which oversees more than 33,000 student housing beds across 43 university markets.
More recent deals
Vesper Holdings is one of the top 10 largest student housing owners in the U.S. The firm’s real estate portfolio consists of 53 properties, including more than 25,000 student housing beds.
Last month, a joint venture involving Vesper sold The Indy, a 172-unit, 543-bed luxury student housing community in the Atlanta suburb of Marietta, Ga., to Heitman LLC. The buyer acquired the property on behalf of an institutional investor. The property was fully occupied at the time of the sale. Vesper had owned the asset since December 2020, when it acquired the property from Terwilliger Pappas, according to Yardi Research Data. The firm paid $41.8 million for the five-story building located about 1 mile from the Kennesaw State University at Marietta campus.
In April, the firm acquired Brookside Downtown, an 834-bed student housing community, in Columbia, Mo., within walking distance of the University of Missouri campus. It was the firm’s second acquisition in the market and ninth student housing transaction within 12 months. The property, built between 2010 and 2024, has seven mid-rise buildings with ground-floor retail space.
Vesper also made several acquisitions last fall in the Dallas area. In October, the firm purchased Midtown 905, a 432-bed student housing community in Denton, Texas, from RPM. A month earlier, Vesper acquired the 696-bed Gateway at Denton from MJW Investments. The property is just 0.3 miles from Midtown 905. Both properties are near the University of North Texas.