June 24, 2019
Champaign, IL – XFD Real Estate Partners is expanding its operations to now include third-party management services for other owners in the student housing industry. From its inception in 2016, XFD’s management platform has been focused on the self-management of XFD’s Student Housing development and acquisition projects; however, as the company has grown and established its identity as a recognized top-tier operator, the decision to expand into third-party seems like a natural next step.
“The flood of capital into the Student Housing space has created a gap when it comes to skilled management” said Samuel Mtunga, Principal and Chief Operating Officer at XFD “We saw $10.5b in transaction volume in the space last year alone, representing the full spectrum of investment strategies, from Class-A development to deep value-add acquisitions. This range of needs requires thoughtful execution when it comes to management in order to succeed. Unfortunately, we’ve seen a lot of investments fail or suffer due to poor management and, in a lot of cases, conflicts of interest where you have one management company managing buildings for half the ownership groups in a single market. Given how competitive the Student Housing landscape is, we believe that owners can no longer afford to just check the box when selecting their management, and that it is time to present the market with a real option that will safeguard their investment and execute on their business plan.”.
XFD’s first third-party management assignment comes in the form of a two-year old, 592-bed purpose-built property in Buffalo, New York known as Monarch 716. The property which opened its doors in the Fall of 2017 was recently foreclosed on after two years of operations. XFD will be the property’s fourth management company and is tasked with repositioning the property and setting a new course post-foreclosure. The property is one of two purpose-built products located less than a mile from the Buffalo State University campus, which serves over 9,000 students.