Madison International Realty Acquires Stake in Florida Student Housing Portfolio

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Jun 27, 2011, 09:36 ET

NEW YORK, June 27, 2011 /PRNewswire/ -- Madison International Realty, a leading real estate private equity firm, announced it has acquired an 80% equity interest in a portfolio of two class A quality student housing communities in Gainesville and Tallahassee, Florida, for $30 million.

The properties, The Enclave and Seminole Grand, have a total of 898 units. Both communities are owned and operated by The Collier Companies, the third largest student housing operator in the U.S.

"We like the fundamentals of student housing and have been highly selective in assessing existing opportunities. These are high quality communities located in close proximity to several of the largest universities with dramatic supply-demand imbalances in housing availability for students," said Ronald M. Dickerman, Madison founder and president. "They fit Madison's strict parameters for properties in which we acquire partial ownership interests. The transaction allowed the sponsor to monetize some of its embedded equity value."

The Enclave is a class A garden-style student housing apartment community located adjacent to the University of Florida in Gainesville. Completed in 2008, it has 412 units in 13 buildings and is 98% occupied.

Seminole Grand is a 486-unit, 36-building garden-style student housing community in close proximity to Florida State University in Tallahassee. It was completed in 1995 and underwent a $7 million renovation in 2008.

Madison International Realty acquires illiquid and/or partial ownership interests, such as joint venture, limited partner and co-investment interests, in class A properties and portfolios from investors seeking an early exit strategy. The firm also provides equity for recapitalizations, debt restructurings, and to monetize embedded equity in existing ownership entities. Madison invests as a principal on behalf of its private equity funds.

With more than $1 billion in capital commitments, Madison invests exclusively in stabilized core quality properties and portfolios in the U.S., U.K. and Western Europe. The firm sources potential investment interests from investors worldwide from its offices in New York, London and Frankfurt. Madison investments include the Chrysler East Building at 666 Third Avenue, 300 Park Avenue and 520 Madison Avenue in New York City; One Bush Street, San Francisco; and the Devonshire House, London.

About Madison International Realty

Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides joint venture and preferred equity capital for real estate owners and investors that are looking to de-lever their properties; seek an exit strategy; or where existing sponsors seek to sell a portion of their ownership position. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. With $1 billion in capital commitments, Madison invests only in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. Founded in 1996, Madison has offices in New York, London and Frankfurt, Germany, where the firm operates under the name of Madison Real Estate Beteiligungsgesellschaft mbH.

SOURCE Madison International Realty