- Student housing in the private market is a highly lucrative operation with high cash flow during the investment holding period.
- Despite increased cash flow, student housing units do not command a meaningful premium over comparable market-rate units upon sale.
- When you buy student housing in the private market, you buy it for the high yield, which is absent in American Campus Communities (ACC).
- Net Asset Value is $45.43 per share at a 5% cap rate, and this 8.2% discount to NAV is not a large enough margin of safety to warrant a buy.
- Student housing occupancy will rebound, but that does not make ACC a good deal.
For further details see:
American Campus: Student Housing Investors Should Look To The Private Market