Multifamily and student housing developer Subtext has made its first transaction under its new acquisitions arm. This marks a milestone that expands the company’s $2.8 billion development track record with a complementary acquisitions strategy led by partner and executive vice president Mike Hung.
The firm has acquired District Flats, a 259-bed, 119-unit student housing property in Columbia, Missouri. The six-story building provides one-, two-, and four-bedroom units. District Flats is ideally located—two blocks from the University of Missouri at Columbia and a half-mile from Columbia College. According to Subtext, the development will undergo a brand repositioning and capital improvement program, including redesigned amenity spaces, an upgraded fitness center, and new study areas.
“This acquisition is a clear example of the strategy we set out to achieve,” said Hung. “Subtext’s student housing platform serves major university markets by meeting the growing demand for high-quality communities. We’re applying the same focus on resident experience and performance that has defined our ground-up developments, while expanding into opportunities where we can unlock value and strengthen our presence in top-tier university markets. District Flats is a prototype for our acquisitions platform.”
Founding partner and co-CEO Brandt Stiles added that the acquisition marks a return to the firm’s origins.
“Returning to the Columbia market, where we delivered our first development, TODD, in 2015, is a full-circle moment for Subtext,” he said. “It speaks to how far we’ve come and where we’re headed in creating distinctive student communities nationwide.”
JLL’s capital markets team, led by Stephen VanLeer and Mike Brady, advised on the debt, while Webster Bank served as the acquisition lender.