Visum Development worked with its equity partners — including East To West Capital, a real estate private-equity firm in the United Kingdom — to sell the assets.
The housing complexes include a total of 281 beds, Harrison Street said.
“Ithaca, New York and Cornell University represent one of the most attractive student housing markets in the country from a supply and demand perspective,” Andrea Cassandro, managing partner of East To West Capital, said. “This market characteristic is made possible by the great demand and the barriers to entry that exist for new development.”
“These are well managed, highly desirable student accommodations serving one of the nation’s most prestigious universities in Cornell,” Christopher Merrill, Harrison Street’s co-founder, chairman and CEO, said. “Ithaca is a phenomenal, growing college town but access to new developments is scarce. We are pleased to have acquired these assets and support these exceptional student accommodations designed to facilitate and enhance the university experience for Cornell students.”
The Lux — located at 112-114 Summit Ave. in Ithaca — is a 207-bed development completed in 2018. The Lux includes two, four-story buildings. The Lofts — located at 201 College Ave. in Ithaca — is a 74-bed development completed in 2017. The Lofts consist of one five-story building.
At the time of acquisition, each development maintained a 95 percent occupancy rate.
“We’ve overachieved the investment goals that have guided the initial development and ongoing management of these complexes,” Cassandro said.
Cassandro credits development partner, Todd Fox of Visum Development Group. Fox, who is based in Ithaca, demonstrated “impressive handling” of local municipal approvals and “expert execution with on-time and on-budget” construction. Both buildings have “overperformed the initial business plan,” per the news release.
“With interest rates remaining low and the impacts of COVID more fully understood, now was an appropriate time to sell,” Fox said. “This asset has performed well since we developed it and should remain one of the premier student housing properties in Ithaca.”