Ares Management Corp. and The Scion Group have formed a new partnership and made their first acquisition, purchasing a portfolio of 12 US student housing properties for approximately $910 million. This significant deal involved 7,578 beds and was acquired from Harrison Street Asset Management. The transaction represents one of the largest student housing portfolio dispositions in recent years, highlighting the continued strong institutional demand for this asset class.
The properties acquired are located near major universities across the US, including the University of Notre Dame in Indiana, Ohio State University in Columbus, James Madison University in Virginia, University of Florida, Auburn University, Arizona State University, George Mason University, Texas State University, Binghamton University, Tarleton State University, University of North Dakota, and Washington State University. This acquisition boosts The Scion Group's total portfolio to over 105,000 beds across 161 communities, making it the world's largest owner of off-campus student housing.
This new joint venture between Ares and Scion plans to focus on investing in high-quality off-campus student housing assets in markets characterized by strong enrollment and limited new supply. Both firms emphasized their shared conviction in the long-term strength of the student housing sector. Harrison Street Asset Management, the seller, stated that this disposition is part of its strategy to exit diversified portfolios offering compelling scaling opportunities for institutional buyers, having invested over $24 billion across 431 student housing properties since 2005.
The student housing sales market has seen a significant increase in activity, with dollar volume rising by 30% between 2024 and 2025, reaching $10.4 billion last year, up from $8 billion in 2024 and $5.7 billion in 2023. This trend underscores the sector's robust fundamentals, including constrained new supply and consistent demand from leading universities. Berkadia's 2026 report indicates a rebound in investment following a dip in 2023.
The financing for this acquisition was brokered by Walker & Dunlop, with BMO leading the deal. This marks the largest student housing portfolio sale in the US for 2026 so far, reflecting the ongoing institutionalization of the student housing sector and the appeal of its resilient demand characteristics to major investment firms like Ares and Scion.
