Student housing developer buys assemblage near University of Miami for $23M
79-unit Cloisters Miami is west of school
Landmark Properties bought a student housing complex and adjacent development site west of the University of Miami.
Athens, Georgia-based Landmark bought The Cloisters Miami, a two-building rental community at 5830 Southwest 57th Avenue, and the 2 acres of vacant land next door for $23.3 million, records show.
Landmark also closed on a $41.8 million construction loan, indicating additional student housing development could be on tap. Webster Bank was the lender. The loan amount can go up to $83.6 million, records show.
The purchase gives Landmark control of almost the entire block between Red Road and Southwest 57th Avenue and between Southwest 58th Terrace and 60th Street.
The property, which totals nearly 5 acres, is in an unincorporated Miami-Dade County area and two blocks west of UM’s main campus in Coral Gables.
Chicago-based CA Ventures paid $21 million for the property in 2019 in two deals, one for the land and the other for The Cloisters. At the time, Cloisters was a condominium but has since been converted to rentals.
The 79-unit Cloisters has 128 beds and offers one- to three-bedroom units, according to Landmark’s website. The pet-friendly community includes a pool.
Landmark did not return requests for comment.
Landmark, led by co-founders J. Wesley Rogers and James Whitley, also manages The One at University City near Florida International University. It has student housing communities nationwide and in Florida, its properties are in Orlando, Gainesville, Tallahassee and Tampa, according to its website.
In August, Landmark and Blackstone Real Estate Income Trust went into a $784 million joint venture to buy and recapitalize student housing. The JV is focusing on an eight-property, 5,400-bed portfolio and on assets near “leading universities,” Blackstone had said.
It is unclear if the Cloisters purchase is one of the eight properties.
The Blackstone-Landmark JV and Landmark’s recent South Florida purchase are the latest deals marking strong investment appetite for this property type.
The market rebounded in 2021 when universities resumed in-person classes and is expected to grow in the near future. The National Multifamily Housing Council reports that the student housing market is expected to increase by around 700,000 beds over the next decade.