Stonepeak Partners with Cardinal Group to Boost Multifamily Portfolio with Prime Student Housing Assets
In an industry where location is paramount and contemporary amenities are the norm, multifamily investments are continually evolving. Keeping pace with this trend, Stonepeak—a venerable alternative investment firm with a focus on infrastructure and real assets—has recently expanded its multifamily portfolio in a significant manner.
Stonepeak has announced its acquisition of three purpose-built student housing assets in partnership with Cardinal Group. This strategic acquisition introduces approximately 2,300 beds to their holdings, reinforcing the firm’s commitment to the student housing sector; a niche within the multifamily industry that requires a nuanced understanding of its occupants’ unique needs. These assets, which boast an average distance of merely 0.1 miles from campus, could scarcely be closer to the beating heart of academia, bringing undeniable convenience into the lives of the students they house.
Cognizant of the pivotal role these properties play for both residents and investors, Phill Solomond, Senior Managing Director and Head of Real Estate at Stonepeak, confirms, “This acquisition reflects our conviction in the resilience and long-term fundamentals of well-located student housing, and we are excited to add these assets to our portfolio. With growing enrollment trends and embedded demand for assets adjacent to campus, we look forward to delivering both high-quality living experiences for students and strong performance for our investors.”
Stonepeak’s commitment to thought leadership in multifamily is evidenced by their thematic investment approach. The real estate team zeros in on assets that exhibit infrastructure characteristics, aligning their investments with sectors experiencing positive macro tailwinds. They champion assets that not only fulfill mission-critical roles for businesses and communities but also promise consistent returns, withstand inflationary pressures, and boast high barriers to entry.
With properties primarily positioned in the Sunbelt and built as recently as 2020, the portfolio represents the class-leading standards expected in today’s market. The selection of these Class A properties resonates with Stonepeak’s broader investment philosophy of pursuing avenues that ensure not only fiscal prudence but also the satisfaction and well-being of the end-user—in this case, students.
As the multifamily space continues to respond to shifting societal trends, investment firms like Stonepeak prove that a strategic, forward-looking approach underpinned by expertise, sector knowledge, and the drive for innovation lies at the core of successful multifamily ventures. The collective expertise of industry advisors such as Simpson Thacher & Bartlett LLP and Jones Lang LaSalle, which assisted in the deal, further exemplify the commitment to excellence that Stonepeak and its partners maintain.
In conclusion, Stonepeak’s latest acquisition is a kaleidoscope of strategic foresight and an adherence to quality that mirrors the company’s established reputation in the multifamily industry. As Stonepeak propels forward, the synergy between their vision and operational capabilities may serve as a blueprint for success in the constantly evolving landscape of multifamily investments.