In November 2016 Largest Deal To Date Andover/M Group partnered with Coastal Ridge Real Estate in acquiring two brand new exceptionally well-located, high-end student apartment communities adjacent to the campus of Notre Dame University in South Bend, Indiana. This was a $62,000,000 off-market transaction. Built in 2013 thru 2016 Irish Flats (98 units / 188 beds) and Overlook at Notre Dame (357 units / 365 beds) are communities considered to be best-of-class design with a complete package of amenities. The partners saw an opportunity in the submarket with a lack of supply of on campus housing.
These two communities are two of only four purpose built properties for student housing that were built on or immediately adjacent to the university in the last ten years. The properties were 100% leased with waiting lists at the time of acquisition for the 2016/2017 school year.
The investment structure for the combined acquisition will provide average annual investor cash flow of 11.5% and projected IRR of 18.9% over a 10 year hold period.