Landmark Raises $140M in Initial Close of $500M Student Housing Fund

Landmark Properties has held the initial closing of Landmark Realty Partners II, LP, with approximately $140 million of aggregate capital commitments, the firm announced Aug. 20. The vehicle is seeking $500 million of total commitments and will invest in value-add real estate opportunities in the U.S. student housing sector.

“The support we have received at this initial closing reflects the confidence our partners place in Landmark’s vertically integrated platform and will allow us to immediately capitalize on the attractive value-add opportunity we see in student housing today,” said Wes Rogers, Landmark’s chairman and chief executive officer.

With the initial closing, Landmark said the fund is now formed and “we are able to begin investing. We would anticipate holding multiple subsequent closings prior to and including the final closing, on our way to meeting or exceeding our fundraising target.”

Landmark is targeting properties built during the wave of student housing development between 2012 and 2018, when new deliveries averaged roughly 60,000 beds annually, often from developers without a dedicated student housing focus. Those assets are now 10 to 15 years old or older, an age the firm considers well suited to capex-efficient repositioning, amenity refreshes, and selective in-unit upgrades, according to Landmark. Enrollment growth at Landmark’s target schools – large, publicly chartered four-year universities with competitive academics and low acceptance rates – has nearly doubled that of U.S. colleges overall over the past five years, the firm said.

“Since the inception of our value-add acquisition strategy, we have remained disciplined and opportunistic in our market and asset selection,” said Walt Templin, Landmark’s president and chief investment officer. “We view this strategy as highly complementary to, and well-informed by, our broader student housing operating and development platforms. … We are able to acquire high-quality assets in great locations that are well-occupied but under-rented. With our in-house leasing, property management, and capital projects teams, we can address both the operational and the physical side of the business plan.”

The initial closing comes less than five months after Landmark held the final closing of Landmark Sponsor Fund, LP, an opportunistic vehicle focused on student housing development that closed at $300 million, 50% above its $200 million target. Landmark has also moved this year to build out its distribution beyond institutional investors, naming Sean Morris head of private wealth in July to lead a retail-facing opportunity zone fund series.

Since launching its value-add acquisition strategy in 2018, Landmark has completed more than $2 billion of value-add acquisitions totaling more than 19,000 beds. Since its founding in 2004, the firm has completed more than $14 billion in student housing investments in total.

Headquartered in Athens, Ga., with offices in Atlanta, New York, and London, Landmark Properties is a real estate investment management firm focused on the development, construction, acquisition, and operation of residential communities. The company reports more than $15 billion in assets under management and a portfolio of more than 115 residential communities across the United States with 76,000 beds under management.

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