Did you know
Facebook is now estimated by some to be valued at $65,000,000,000? Yes, that's $65 BILLION dollars. How do analysts come to that number? The valuation is based on the percentage stake that is given to a new investor as compared to the dollar value of the investment that they make in the company. Just two months ago,
a Goldman Sachs investment in Facebook put the value at $50 BILLION.
How does this relate to real estate in Harrisonburg, VA? An investor just bought a significant stake in the student housing market in Harrisonburg, which provides another data point upon which other student housing owners can value their investment.
The big news --- 38 North has been sold for $32.8 million.The specs of this recently built (2008)
student housing complex include:
- 228 units (816 beds) built on 19 acres
- (96) 3-bedroom units
- (132) 4-bedroom units
- 94.6% occupied at the time of the sale
- sold for $143,640 per unit ($40,135 per bed)
- Amenities including a swimming pool, fitness room, tanning beds, spa, game room with billiards, computer lounge, basketball courts, barbecue grills, and a clubroom
With a 95% occupancy rate, it largely does not matter to 38 North, but I do wonder whether the buyers realize that there is a huge excess of student housing in Harrisonburg.
Recent Articles:
