Florida firm buys student housing complex near Texas State campus

The Florida investment firm Centurion Property Group has purchased the 748-bed Arba apartment complex near Texas State University — the latest real estate firm to see opportunity in the San Marcos student housing market.

Centurion Property Group, based in Aventura, Florida, bought the 14-acre complex on Jan. 9 from Palatine Capital Partners of Miami, Hays County property records show. The complex is on Aquarena Springs Drive, east of Interstate 35.

The purchase price was undisclosed, but a limited liability company linked to Centurion took out a $42.5 million loan from Ladder Capital Finance of New York to make the purchase, records show. The Hays County Appraisal District assessed the property's value at $42.6 million last year.

Centurion, founded in 2019, says it specializes in buying and "repositioning" student housing near major universities in the southern and midwestern U.S. The firm announced its purchase of Arba on its Instagram page, saying it "expands our footprint into one of the fastest-growing university markets in the country."

The 240-unit complex has "strong historical performance" and "long-term value," the company said.

As of Wednesday, the company had a team onsite "leading the transition," with a goal of "elevating the resident experience and strengthening performance as we move into the next leasing cycle," according to the Instagram post.

Centurion owns student housing complexes in a number of college towns, including Lubbock, Gainesville, Florida and Columbia, Missouri, according to its website.

The firm did not respond to an email or phone call on Friday seeking information on the transaction and its plans for the Arba.

With Texas State's enrollment at its San Marcos campus projected to rise to about 40,000 in 2033, up from 37,250 in 2022, and with the university suffering from a long-term housing shortage, a number of real estate firms have shown themselves willing to invest in the San Marcos student housing market in recent years.

An Austin developer, Matt Kenyon, revealed plans this month to build a student apartment complex known as the McLain, with an estimated cost of $88.5 million, at 420 North Street in downtown San Marcos. The Illinois firm Next Chapter Properties plans to build a seven-story student housing complex about two blocks from the city's courthouse square.

At least three student complexes have been built in San Marcos's downtown over the last decade: the Aspire San Marcos, in 2019; the Pointe San Marcos, in 2017; and the Local Downtown, in 2016.

Meanwhile, Texas State plans to build two 10-story dorm towers on its campus, with a total of 1,504 beds.