Core Spaces Buys $300M+ Student Housing Portfolio

Core Spaces has significantly expanded its student housing footprint with a substantial $300 million-plus acquisition. The transaction, finalized on July 23, 2026, brings four prime student residential communities into the fold of its affiliate, the Core University Living Real Estate Income Trust (CUL REIT). This strategic move underscores the enduring appeal of well-located student housing assets, particularly those serving major public universities.

The newly acquired portfolio encompasses over 2,000 beds, strategically positioned near prominent educational institutions. Key properties include Hub Limestone, adjacent to the University of Kentucky, offering 566 beds; Hub Gainesville University and Hub Gainesville 3rd Avenue, collectively providing 1,100+ beds for the University of Florida; and State Morgantown, a 420-bed community serving West Virginia University. The average age of these properties is approximately eight years, indicating a relatively modern and well-maintained asset base.

This acquisition aligns perfectly with CUL REIT's investment mandate, focusing on core and core-plus strategies within the student housing sector. The trust targets stabilized communities in top-tier university markets, aiming for long-term ownership and consistent income generation. The inclusion of assets near Power 4 conference schools highlights a deliberate focus on markets with robust student demand and strong institutional backing, factors that typically translate to high occupancy and rental growth potential.

Demonstrating the desirability and operational strength of these assets, the portfolio boasts an impressive 99% current occupancy rate. Furthermore, the communities are fully pre-leased for the upcoming 2026/2027 academic year, a testament to their competitive positioning and the consistent demand for quality student accommodations. This high level of pre-leasing provides immediate cash flow stability and reduces near-term leasing risk for CUL REIT.

The student housing sector continues to attract significant investor capital, driven by demographic trends and the increasing demand for purpose-built student residences. With an estimated market size in the tens of billions of dollars in the U.S. alone, and projected annual growth rates often exceeding 5%, stabilized, well-located assets like those acquired by Core Spaces are highly sought after. This deal reflects a broader trend of institutional investors prioritizing essential real estate sectors with resilient demand drivers.

The Core University Living Real Estate Income Trust operates as a perpetual-life, non-listed REIT, designed to offer investors exposure to stabilized student housing properties. This structure allows for a long-term investment horizon, aligning with the nature of real estate assets and the steady income streams characteristic of the student housing market. Core Spaces' continued activity in this space signals confidence in the sector's long-term prospects and its ability to execute complex portfolio transactions.