Greystar purchases land for student housing project

TUSCALOOSA, Ala. (Sept. 25, 2020) – Greystar, a leading investor, developer and manager of student housing and multi-family properties, has purchased 1.71 acres of land near the University of Alabama for a $70 million student housing project. The community, Union on Frank, will be a 200-unit, 396-bed, Class A property located two blocks west of Bryant-Denny Stadium, where the University of Alabama football team plays.

The property, located at 512-530 Frank Thomas Avenue, 508-510 Frank Thomas Avenue and 515 Red Drew Avenue, includes two parcels with existing student housing and multi-family structures. The buildings will be demolished to allow for construction of the new community.

Sean Baird and Jonathan Holt of Colliers International's Student Housing Group, and Carter Brehm, Austin Weathington and Will Mathews of Colliers International's Multifamily Advisory Group represented both parties in the sale.

"As the University of Alabama student housing market has matured, we've seen a shift in demand towards more high-end properties," said Baird, Director of Colliers International Student Housing Group. "Greystar will build a world-class student housing community that serves a world-class university."

Greystar manages and operates over $200 billion of real estate in nearly 200 markets. It's the largest operator of apartments in the United States, managing approximately 693,000 units/beds. The firm has approximately $35.5 billion of assets under management, including over $15 billion of assets under development.

Union on Frank will be located in an overlay district near the University of Alabama that allows for unlimited density and increased building height of 75 feet or higher for a site over one acre. Two other student housing projects – the Times Square project and HERE Tuscaloosa – are currently underway in this district. They will add an additional 293 and 430 beds to the area, respectively.

"The buyer faced a number of challenges with the City Council leading up to this sale, including a moratorium on new developments over 200 beds and discussion around a multi-million-dollar upgrade to the sewer network," said Holt, Director of Colliers International Student Housing Group. "However, the zoning in this area allowed for increased density, which made it a best-in- market location for Greystar."

While the city of Tuscaloosa removed the moratorium on developments over 200 beds prior to the sale of this land, it has since been put back in place. The moratorium will not apply to this property, but will limit future student housing development in the area.

About Colliers International Group Inc.
Colliers International (NASDAQ, TSX: CIGI) is a leading real estate professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliersor LinkedIn.