Chicago-based Core Spaces has agreed to a strategic partnership with Goldman Sachs to recapitalize and develop a portfolio of nine assets, valued at more than $600 million. The portfolio consists of seven operating assets and two buildings under development – totaling over 4,300 beds. Goldman Sachs and Core Spaces view this initial transaction as the first step towards their commitment to building a joint-venture portfolio of best-in-class housing assets across the U.S.
The deal reached with affiliates of Goldman Sachs’ Merchant Banking Division is a continuation of a trend in the institutionalization and maturation of the student-housing industry and another substantial commitment by a leading investor in the sector.
“Our partnership with Goldman Sachs allows us to continue to develop and manage what we feel is the best real estate in the educational sector," Core Spaces' Founder and CEO Marc Lifshin said in a statement.
Peter Weidman, a partner in the real estate principal investment area within the Goldman Sachs Merchant Banking Division, added: “We continue to see strong fundamentals for student housing investment in select university markets across the United States. We are excited about our partnership with Core Spaces as we look to continue the growth of our student housing platform with a best-in-class partner.”
This transaction follows Core Spaces’ previous experience transacting and/or partnering on developments with some of the largest owners of student housing in the U.S., including American Campus Communities Inc. (NYSE: ACC) and EdR (now Greystar). Core Spaces will continue its strategy of developing and owning best-in-class real estate in educational markets.
Since its founding in 2010, Core has developed property in top-tier university markets across the country. It has developed and/or owned 28 properties nationwide — totaling more than 13,000 beds — and has a pipeline of over 15,000 beds in various stages of development.
Goldman Sachs Merchant Banking Division is the primary center for Goldman Sachs’ long-term principal investing activity. Established in 1991, Goldman Sachs has operated this business as an integral part of the firm for more than 25 years, investing approximately $50 billion of equity in real estate and real-estate-related assets across approximately 850 investments located in more than 35 countries.
