Students voice their concerns about the affordability and quality of student housing following Investcorp’s recent purchase of West 22.
Investcorp, one of the largest alternative investment management companies in the Middle East, purchased the West 22 student housing complex for $89.7 million on Oct. 27, according to Cobb County Real Estate records.
West 22 is a popular off-campus housing option for students attending Kennesaw State University. The 850-bed apartment complex is home to numerous students and members of the community. The housing complex was built in 2013 and was owned by New York real estate investment firm Vesper Holdings until this recent purchase by Investcorp.
Investing.com reports that “Investcorp’s investment comes amid a broader trend of interest in Sun Belt student housing, which is known for its higher rent growth. The sector is seen as recession-proof and attracted $10 billion in investments in 2022 alone.”
The Sentinel contacted Prosek Partners, Investcorp’s communications agency, regarding the company’s recent purchase of the student housing complex, West 22. They declined to comment.
According to CLS Living, this transaction marks Vesper’s ninth recapitalization over the past 18 months. In the past month, Vesper has marked student housing transactions exceeding $200 million. This has led to fears among students of housing prices increasing.
“I really hope my rent doesn’t go up because of this,” Student Sophie Rosin said. “I planned on living at West next year too, and it is already too expensive. It’s hard being in college full-time and student housing is over $900 a month no matter where you go in Kennesaw.”
According to Student Housing Business, $3 million in capital improvements will be made to the property over the next two years.
West 22 boasts several amenities, such as a resort-style pool, a recently upgraded fitness center, a sand volleyball court, a peaceful study lounge and a Starbucks coffee bar. However, to enjoy these amenities, students must be willing to pay premium prices.
The price of monthly rent for different floorplans at West 22 for the upcoming 2024-2025 school year ranges from $939 per person for a five-bedroom, five-bathroom apartment to $1,379 for a one-bedroom suite. Using the Internet Archive’s Wayback Machine and looking at prices from January 2014, students could acquire a one-bedroom suite at West 22 for $845 a month. This notes a 63% increase in rent from 2014 to now.
This trend is visible across other favored student housing options in Kennesaw. With the KSU student population rising to nearly 45,000 students, the demand and costs for student housing are rising as well. Some students are concerned about the affordability of housing in Kennesaw in the future.
“I pay for my own rent, and the prices have continuously gone up each year, even though I’ve lived in the same place for three years,” Student Catalina Naylor said. “I have had to increase my work hours to be able to afford living, which limits the time I have to spend on schoolwork, and what I pay does not amount to the quality of housing that I receive.”
Although students pay steep prices for utilities like valet trash, these services are not always reliable. Student Sara Cate Kloser experienced problems regarding the lack of communication and the disregard for services promised by West 22.
“I have lived at West 22 for almost three years now. Under new management, I think West could help residents by having better maintenance,” Kloser said. “Over the summer, I had 22 trash bags outside my apartment and we had rodents roaming around near our place. We finally had to move them to the front of West 22 for someone to finally pick them up.”
In response to rising rent prices, students expect to receive the services they pay for. With Investcorp’s recent purchase of West 22, residents hope the housing complex will acknowledge their concerns and make policy changes.
