NO MORE ANIMAL HOUSE?
When Michael Zaransky and Barb Gaffen founded Prime Property Investors in 1993, the idea of student housing still conjured images of John Belushi in Animal House. But they've seen a flight to quality that has extended to their new venture in luxury suburban apartment complexes. We assume this means gold-plated beer pong tables. | |
PPI is the largest off-campus landlord at Purdue and Notre Dame. It specializes in buying buildings close to campus, a trend that started when each partner's kids went off to school. Now that their children have graduated, they see a new niche: Young adults in the recession aren't able to buy a place right out of college and need nice apartments to stay in while they save their money. | |
This realization led Barb and Michael to purchase the $32M Arbors of Brookdale in Naperville late last month. The 96% leased complex includes a clubhouse and pool. Although the company's current 60-building, six-city portfolio has held up well over the recession due to a growth in student housing, Michael and Barbara want to diversify and are looking for new properties in DuPage and Lake Counties. | |