#United States #LaSalle Investment #East Lansing #Red Cedar Flats #Michigan State U

LaSalle Investment Management Expands Its Portfolio with New Student Housing Acquisition

LaSalle Investment Management, recognized globally as a significant player in real estate investments, has made a notable step into the student housing market. Recently, the firm announced its acquisition of Red Cedar Flats, a well-designed community consisting of 190 units and 436 beds, strategically situated within walking distance of Michigan State University in East Lansing, Michigan.

The acquisition was completed on behalf of LaSalle Value Partners IX (LVP IX) with contributions from joint venture partners such as King Bridge Partners and Clear Rock Capital. This new addition signifies LVP IX's initial foray into the student housing sector, aligning with the fund's strategy of identifying high-potential investment opportunities across various real estate domains.

Red Cedar Flats, developed between 2017 and 2021, is ideally positioned to cater to the growing student population at Michigan State University. The recent acquisition speaks volumes about LaSalle's commitment to expanding its portfolio in sectors promising considerable growth and stable returns.

Jeff Shuster, President of LaSalle Value Partners, emphasized the attractiveness of student housing as an investment, particularly in areas surrounding large, enrollment-driven universities experiencing limited new developments. He stated, “Red Cedar Flats presents a high-quality asset acquired below its replacement cost while already generating cash flow. This provides an appealing opportunity for robust risk-adjusted returns.”

The move also enhances LVP IX's presence in the living sector and complements the fund's existing investments in industrial properties, residential spaces, and healthcare facilities. With record enrollments reported at Michigan State University recently, the demand for well-located student accommodations continues to strengthen, underpinning the asset’s value proposition.

Joseph Paskov, Senior Vice President of LaSalle Value Partners, further highlighted the firm’s focus on sourcing differentiated investments. “This acquisition showcases our team's capability to identify unique opportunities that promise attractive returns relative to their risk assessments. We see significant potential in the student housing sector that aligns with our value-add strategy,” he noted.

A well-established player in managing student living environments, University Partners, has been appointed to oversee property management and co-asset management services for Red Cedar Flats.

About LaSalle Investment Management

LaSalle Investment Management operates as a subsidiary of JLL and is an integrated, globally diverse real estate investment manager. The firm manages a remarkable US$86.9 billion in assets from diverse real estate equity and debt investments worldwide. Its clientele includes public and private pension funds, insurance companies, governments, corporations, endowments, and individuals, underscoring LaSalle’s broad industry influence.

For further insights about LaSalle Investment Management and its offerings, you can visit LaSalle's official website or engage with them on LinkedIn.