Blackstone Buying American Campus Communities

[NitroZ7]

Blackstone is one of the biggest owners of real estate. Now it looks like they are buying ACC which owns a ton of rental apartments around college campuses. I think it is a good purchase since you essentially get renters with parent co-signers that in most cases are collectible and solvent. If I was ever going to buy a rental property it would be one near a college campus. The rents in places like Ann Arbor are always increasing as there always seems to be a tight supply of student housing. I looked for a condo there when my daughter went and the prices were just about as high as those in Miami.

[TampaJim]

Personally, I'd like to see Blackstone burn up in the atmosphere and just go away.
They're responsible for more community destruction in Florida than imaginable.

At this point, we just assume they're going to buy anything available in our area.
Once they own it, sky high rent, zero maintenance, no concern about the tenants.
Have cash, rent away. Drug lords, sure. Pedophiles, sure. Eleven per house, sure.

Last conversation with a maintenance guy (read as desperate guy) was so crazy.
One technician per 1,000 rental units, period. Few tools, few parts, lots of glue.
In our area, a 40 year old 3/2 1,600SF will set you back at least $2,200/month.
And it's pretty much guaranteed things won't work properly, or at all, or be fixed.

Based on our experience and knowledge, they won't care about your investment.
When we see things of this nature from a corporation, we just stay far and clear.

[idbefishing]

Wow, sounds like some evil chits they're doing. If I was a slum lord, college students will be the last of my tenants choice. Maybe it's different now but back when I rented in college, never needed co-signers.

[NitroZ7]

Wow, sounds like some evil chits they're doing. If I was a slum lord, college students will be the last of my tenants choice. Maybe it's different now but back when I rented in college, never needed co-signers.

Most of them now are run by REITS or other large companies. I had to provide tax return information to co-sign on my daughters lease. In many college areas they run at full 100% rented and have wait lists for the following year. I was up visiting my kids two weeks ago and they are building two more apartment buildings and will be able to get $1,800+ a month for a a small studio.

[idbefishing]

That's nucking fut! I've heard Purdue doesn't have enough student housing.

[Charles Prestridge]

Over the past 30-40 years, I think the large increase in the cost of Tuition and Housing, has been fueled by what Parents are willing to spend.

I do not say that as a negative, just reality.

Student loan proliferiation is part of the reason, but two-income parents is likely the bigger factor.

Universities have been able to continue raising tuition and fees (I hate the excessive fees) because they know Parents will pay.

The same can be said for on-campus and off-campus housing.

We have been fortunate, our four Children’s university-expenses have not been extreme. Georgia Hope Scholarship paid most of Tuition costs. Most of the time 2-3 lived together in single apartment.

I do not the answer to the high cost of Student Housing, but I think the owners are extracting every ounce of juice from the turnips (The Parents). They feel the steady pipeline of students will not cease.