Seeking Insight on Structuring for a Premium Midwest Student Housing Acquisition
Hello, BiggerPockets community. My partner and I are in the final stages of underwriting an off-market, 100% occupied, 29-unit student housing portfolio near Iowa State University. The asset is stabilized with a strong NOI, and we have the senior debt terms in hand.
We're evaluating the optimal equity structure for a deal of this size and profile (~$870k equity check). Our thesis prioritizes capital preservation and current yield for our equity partners through a preferred return structure, with a planned exit via refinance in the 2-3 year horizon.
I'm interested in connecting with other sponsors or experienced passive investors who have worked with similar 'club deal' or single-LP equity placements for sub-$2M acquisitions. Specifically, I'd appreciate insights on:
- Structuring preferences from investors focused on current yield over long-term promote.
- Effective ways to demonstrate sponsor track record and operational capability to new capital partners.
- Building relationships with family offices or UHNWIs who appreciate the risk-adjusted profile of stabilized, essential asset classes.
Our GP team brings over 8 years of experience and a 400+ unit portfolio. We are not publicly soliciting capital here. Instead, I'm looking to learn from the experiences of others in this niche and discuss the nuances of aligning sponsor-investor interests for smaller, high-quality deals.
Happy to share more details on the market fundamentals and our business plan via DM for those with relevant experience.