Harrison Street and Core Spaces have acquired land at the University of Arizona in Tucson for the construction of Hub Tucson V, a purpose-built student accommodation (PBSA) scheme.
The Hub Tucson V scheme will deliver a 161-unit, 648-bed development, which is expected to complete in time for the Fall 2025 semester. TSB Capital Advisors acted as financial advisor to Harrison Street and Core Spaces.
“Today’s announcement builds on our proven history of identifying unique investment solutions based on data and demographic factors. Demand for purpose-built student housing continues to see significant tailwinds, driven by unwavering student interest in the university experience, and we see tremendous potential in meeting growing demand for campus-adjacent assets with this transaction. We’re also thrilled to expand our relationship with Core Spaces, a group with a track record of both execution and innovation.”Justin Gronlie, Managing Director and Head of North American Education Transactions, Harrison Street
The scheme is located adjacent to the University of Arizona campus, which enrols 40,000 students including a full-time undergraduate class of 28,000 students. Hub Tucson V offers convenient access to classes, Greek-affiliated housing and Main Gate Square, the primary student-oriented retail and nightlife hub in Tucson.
Amenities will include a luxury rooftop pool deck, hot tub, courtyard with grilling stations, business centre, fitness centre, study rooms and parking.
With the acquisition of Hub Tucson V, Harrison Street and Core Spaces will add their eleventh asset to their successful partnership, solidifying their commitment to providing high quality student housing options to university communities across the US.
“Hub Tucson V marks our sixth development project in Tucson, and we’re thrilled to continue our investment in the market in partnership with Harrison Street. The University of Arizona community is vibrant and continues to grow both through enrolment and overall development in the area. We look forward to bringing another high-quality housing option to the market for University of Arizona students to call home for years to come.”Brendan Miller, Senior Managing Director and Chief Investment Officer of Student Housing, Core Spaces
Harrison Street is an investment management firms exclusively focused on alternative real assets, with approximately $55bn in assets under management. Over the last 16 years, the company has demonstrated its expertise in investing in purpose-built student housing assets, with a successful track record of deploying over $20bn in gross costs across approximately 400 properties, totalling more than 216,000 beds throughout North America and Europe.
Core Spaces is a residential real estate developer, owner and operator who has established a strong presence in Tucson. The company has previously developed five residential communities in the market totalling 720 units and over 2,170 beds.
Core Spaces currently owns and operates three of these properties – Hub on Campus Tucson Speedway, oLiv Tucson and Hub on Campus Park Avenue. Hub Tucson V adds to its portfolio as an owned and managed project upon expected completion in 2025.