The Scion Group, an owner and operator of student accommodation, and private equity giant Ares Management have acquired a portfolio of four student housing properties in the US states of Texas, Tennessee, and Georgia for approximately $435 million. This transaction marks the joint venture's second significant acquisition of this type this year.
The portfolio acquired by Scion and Ares comprises 2,316 beds and was sold by Schenk+, a property development and investment company led by Jared Schenk, which specialises in off-campus student accommodation. Three of the now acquired properties were developed by Schenk+, while the fourth was acquired and repositioned by the firm. This was announced in a statement published by the buyers on Tuesday.
Locations and Significance of the Acquisition
The portfolio includes properties at the University of Georgia in Athens, the University of Tennessee in Knoxville, and Texas State University in San Marcos. Robert Bronstein, CEO of the Scion Group, expressed his appreciation for Jared Schenk in a statement, calling him one of the pioneers in off-campus student accommodation. Bronstein highlighted that Schenk had built a high-quality portfolio and that this transaction represents a comprehensive exit for him and his investors. Scion was pleased to add another successful portfolio exit to their track record and to include the new properties in their portfolio.
Nati Kiferbaum of Inland Real Estate Investment represented Schenk+ in the deal. Representation for Scion and Ares was not apparent. Kiferbaum was unavailable for comment, while a spokesperson for Schenk+ did not immediately respond to a request.
Strategic Expansion and Market Activity
News of this transaction follows approximately three months after Scion and Ares completed what was previously the largest student housing portfolio deal in 2026. In late May, the joint venture acquired a portfolio of twelve student housing properties across the US for $910 million from Harrison Street Asset Management (HSAM). This portfolio comprised 7,578 beds across ten locations and twelve universities, including Arizona State University, Auburn University in Alabama, and the University of Florida.
In a June interview, Bronstein emphasised that the continued collaboration with HSAM, as well as the company's ongoing interest in portfolio transactions, represents a strategic direction. He elaborated that portfolio acquisitions offer significant value as they are efficient for both capital and sellers. As a buyer acquiring entire portfolios, one possesses a certain pricing power, which makes this type of business an efficient path for growth.
