"The decision to create a student housing DST was predicated on the lack of supply for this asset class in the investment market's current environment."
ross curtis - vice president of sales at BV SECURITIES
AUG 5, 2024 – Veteran-owned Bridgeview Real Estate, a Delaware statutory trust sponsor company and developer, has launched a $27.2 million DST offering fueled by high-barrier-to-entry student housing projects at Texas Christian University (TCU) and University of Texas at Arlington (UTA).
Driving Bridgeview's interest in the asset class is its historically consistent demand, creating strong occupancy rates, and a higher potential return on investment than traditional residential properties. Student housing often commands stronger yields due to the proximity to top tier universities.
"The decision to create a student housing DST was predicated on the lack of supply for this asset class in the investment market's current environment," says Ross Curtis, vice president of sales for BV Securities, one of Dallas-based Bridgeview's integrated companies, and the managing broker dealer for its DST offerings.
The BV Student Housing Texas Portfolio DST consists of the 55-unit Liberty Lofts at 3517 S. University Dr. in Fort Worth, which is currently master-leased to TCU, and 70-unit Midtown Urban at 1121 UTA Blvd. in Arlington. The recently launched DST is a Regulation D equity raise for accredited investors seeking capital gains deferments, including 1031 Exchanges.
TCU, like many top universities, experiences strong enrollment growth and a housing shortfall year after year, which initially led to a partial lease with Bridgeview and then a long-term master lease. At UTA, there are roughly 11,000 beds on or near campus for 41,000 students, resulting in Midtown Urban's continued rent growth and healthy occupancy.
"The strong attraction is the absence of student housing construction at TCU and UTA, both of which have high barriers to entry," Curtis emphasizes. "Bridgeview's DST clearly is off to a great start."
THE PROPERTIES
Liberty Lofts was developed in 2009 on 3.61 acres on the TCU campus. Each three-bedroom, three-bath unit totals 1,200 sf. It was fully renovated in 2022, with upgrades including covered parking and an expanded clubhouse with private study rooms for group projects.
Midtown Urban was completed in 2011 on 3.23 acres near UTA's football stadium and within walking distance of the campus. The unit mix of two-, three- and four-bedroom designs are 878 sf, 1,200 sf and 1,492 sf, respectively.
Pictured on the left is a unit at Liberty Lofts (TCU). Pictured on the right is the game room at Midtown Urban (UTA).
Bridgeview acquired the class A student housing projects during Covid, eyeing the upside in their locations and historically high occupancies due to rising enrollments. TCU's master lease for the entire project runs through mid-summer 2028 while the privately managed Midtown Urban is consistently 96% occupied.
"Student housing is similar to multifamily, which was Bridgeview's inroad to the DST market," says Rob Anderson, National Sales Manager and CEO of BV Securities. "It's the same concept, just a more concentrated customer base with constant demand year over year."
Texas is a prime market for DST investment because of its business-friendly laws and income tax-free status. The state's dynamics combined with the health of the student housing market create a compelling story for investment.
At the time of this article, Bridgeview has raised 30% of the offering. For 1031 Exchange investors, the minimum investment is $100,000 or direct cash placement of $50,000.
Bridgeview DST Investment Programs are sold by broker dealers and registered investment advisors authorized to do so.
for more information:
Rob Anderson
214-484-6331
rob.anderson@bvcapitaltx.com
ir@bvcapitaltx.com
Ross Curtis
214-833-2710
ross.curtis@bvcapitaltx.com
About Bridgeview
Bridgeview Real Estate is a member of the Bridgeview family of companies based in Dallas. Founded in 2011, Bridgeview is a private veteran-owned real estate development and investment company. Bridgeview distributes its DST offerings through BV Securities as Bridgeview’s managing broker dealer.
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