News Summary
Morgan Stanley Investment Management and The Scion Group have announced a $262 million joint venture to enhance student housing in Oxford, Mississippi. This initiative includes 600 apartments and over 2,000 beds near the University of Mississippi, catering to rising enrollment trends. The investment aims to provide quality living options, with significant demands resulting from increased student numbers. Additionally, TSB Capital Advisors facilitated the financing, as further development projects for new housing are planned to accommodate future growth.
Oxford, Mississippi – A significant investment in student housing has emerged as Morgan Stanley Investment Management and The Scion Group have forged a joint venture valued at $262 million. This collaboration is set to enhance the student living experience in Oxford, particularly for the growing student population at the University of Mississippi.
This acquisition includes a portfolio comprising 600 apartments, townhomes, and cottages, collectively providing over 2,000 beds. Strategically situated within two miles of the university campus, these assets are designed to meet the increasing demand for quality student housing as the university anticipates record enrollment figures.
Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing (MSREI), underscored the confidence in this acquisition by highlighting the favorable dynamics in supply and demand. The university’s high enrollment numbers contribute to a stable financial outlook for the investment, as students continually seek convenient and quality living arrangements near campus.
The financing arrangements for the acquisition were facilitated by TSB Capital Advisors, which played a pivotal role in supporting the transaction. Rob Bronstein, CEO of The Scion Group, expressed optimism regarding the Ole Miss campus market, identifying it as an area ripe for further investment. The fundamentals of high-quality, well-situated student housing are underpinned by strong enrollment trends and attractive returns on investment.
In terms of scale, MSREI maintains a substantial portfolio, overseeing 43 student housing properties nationwide, offering a total of 17,700 beds. Meanwhile, The Scion Group stands as the preeminent owner/operator of off-campus student housing worldwide, with a portfolio that encompasses more than 94,000 beds across 144 communities in 35 U.S. states. The organization employs over 1,600 staff members and manages assets exceeding $10 billion, yielding over $1 billion in annual revenue.
On the larger landscape, Morgan Stanley Investment Management oversees approximately $53 billion in gross real estate assets globally, leveraging over three decades of experience in property investments. As of late September 2024, the organization, along with affiliates, holds over $1.6 trillion in assets under management or supervision, employing more than 1,300 investment professionals.
The joint venture comes in light of rising enrollment at the University of Mississippi, which is projected to hit 27,124 students in the fall of 2024, marking an 11% increase from the previous academic year. This growth has led to collaborative efforts between the university and external partners, aimed at enhancing housing capacity. The Mississippi Institutions of Higher Learning Board recently approved plans to construct 2,700 new student housing beds through a public-private partnership (P3) model.
The upcoming housing project will be implemented across two sites: one at the former Kincannon Hall, equipped with 1,200 beds, and another site across from the law school on West Row, providing an additional 1,500 beds. The project will also feature new parking garages and a 20,000-square-foot dining facility to further enhance the student living environment. Modern modular construction techniques will be utilized with over 70% of the work expected to be available for local subcontractors, ensuring community involvement.
Greystar Development Services Central LLC has been designated as the contractor for the new facilities. The University of Mississippi has already approved a contract for conducting a feasibility assessment and other preparatory work in relation to the new housing initiative. The maximum financial exposure approved for Ole Miss in the pre-development phase stands at $13.4 million, should the agreement be terminated.
On another front, preleasing for the current academic year has reached an impressive 90.2%, significantly outpacing the national average. Additionally, the GTIS Partners and RISE are collaborating on a separate project named RISE Oxford Farms, set to deliver 504 beds by the 2026-2027 academic year, further underscoring the robust investment in student housing within the region.
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Additional Resources
- YieldPro: Oxford, Mississippi
- MSN: Ole Miss Teams with Greystar
- MultiHousing News: GTIS & RISE to Build Student Housing
- Connect CRE: Joint Venture Pays $262M for Student Housing
- Encyclopedia Britannica: Student Housing
Author: STAFF HERE OXFORD WRITER
The OXFORD STAFF WRITER represents the experienced team at HEREOxford.com, your go-to source for actionable local news and information in Oxford, Lafayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Oxford Film Festival, Double Decker Arts Festival, and University of Mississippi football games. Our coverage extends to key organizations like the Oxford-Lafayette County Chamber of Commerce and the University of Mississippi, plus leading businesses in education and retail that power the local economy such as Ole Miss Athletics and Square Books. As part of the broader HERE network, we provide comprehensive, credible insights into Mississippi's dynamic landscape.
