Housing sector

CSU could buy Edge as investment surges in student housing sector

The Edge on Euclid, the 11-story structure located at 1750 Euclid Ave. in Cleveland, looks set to change hands to become Cleveland State University. It is one of three deals in the area to revive the nascent apartment sector.

A certificate that signals a buyer’s intended purchase of residential or commercial property, filed Feb. 18 with the City of Cleveland Building Department, lists the potential Edge buyer’s address as 2121 Euclid Ave. AC 327. This is the CSU General’s mailing address. council in its administrative building.

Edge is one of three dedicated student housing developments that have helped CSU develop a residential offering seen as helping to transform it beyond its roots as a suburban college. The building opened in 2017 with 564 rooms, which share common kitchens and living rooms in a total of 237 suites.

Since 2019, the resort has been owned by a subsidiary of Goldenrod Capital Services, a wealth management firm in Omaha, Nebraska, which has developed or purchased a portfolio valued at $4 billion, according to its website.

A sale price was not disclosed when Goldenrod, through 1750 Euclid LLC, acquired the property from its original developers, a joint venture of St. Louis real estate developer Korman and Clayco, a design-build construction company headquartered in St. Louis. Louis and Chicago.

The county assigns a market value of $27 million to the property.

Buying Edge would give CSU a campus extending west to Playhouse Square, where the university has expanded film and theater offerings in properties leased or shared with the Playhouse Square Foundation, which operates vaudeville theaters. restored in the neighborhood. Edge is also across from the Maxine Goodman Levin College of Urban Affairs, which borders the theater district on the north side of Euclid.

Improving and expanding student housing at CSU is part of University President Harlan Sands’ growth plan for the school, called “CSU 2.0”. Buying existing property adds to the university’s housing stock with the swift movement of a pen, compared to the years it takes to gain control of the site and the funds to add student accommodation. The university also hired Sasaki, the Boston-based planning and architecture firm, to create a new master plan.

CSU does not comment on the potential sale or purchase of real estate, according to Alison N. Bibb-Carson, the university’s executive director of strategic communications. Recent board meetings, including Thursday, March 17, do not reflect efforts to purchase property, but such acquisitions may be discussed in secret session under the Ohio Sunshine Law Governing State Bodies. .

Purpose-built student housing has developed as a new area of ​​real estate since the 1990s. One of the big attractions is that it was considered recession-proof compared to other apartment and housing sectors. real estate.

However, it is not pandemic proof. Student accommodation has been impacted by the closure of colleges or the establishment of virtual learning programs to combat the spread of COVID-19. It is coming to an end as the nation seems to be emerging from the shadow of the pandemic.

Other purpose-built housing for students has had a checkered experience in northeast Ohio.

Latitude at Kent, a five-storey building at 1450 E. Summit St., was acquired for $31 million in late December by Singapore-based real estate investment firm Ascott Residence Trust as part of the purchase of a portfolio of eight properties across the United States. United States for $213 million.

Ascott said when he announced the deal that Latitude is 98% leased in 2021 and consists of 384 rooms in 126 units.

Meanwhile, The Depot, a 624-bed, 192-unit student housing project at 80 E. Exchange St. that serves the University of Akron, is up for auction by Ten-X Capital and Colliers International, with a bid starting on April 11 from $7 million.

The three-story building, owned by Rialto Capital Management, a Miami firm that buys distressed properties and manages special service needs of distressed property lenders, was built in 2014 and is approximately 90% occupancy, according to auction information.