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College towns are becoming the latest hot commodity in real estate, and two major players just placed a substantial bet on that trend. Student housing operator The Scion Group and an affiliate of Ares Management announced Tuesday they're acquiring a 2,316-bed student housing portfolio from developer and owner Schenk, in a deal valued at $435 million.

The Markets Behind the Deal

The four-site portfolio serves students attending the University of Georgia, the University of Tennessee and Texas State University — three college markets where Scion already maintains an established presence, meaning this acquisition deepens the company's footprint rather than pushing it into entirely new territory.

How the Properties Were Built

According to a Scion news release, the portfolio's seller, Schenk, was founded by Jared Schenk and developed three of the four properties from the ground up, while acquiring and repositioning the fourth. That mix of ground-up development and strategic repositioning speaks to a portfolio built with considerable hands-on investment over the years.

Scion's Scale in the Industry

Scion describes itself as the largest off-campus student housing operator in the country, managing nearly 117,000 beds spread across 92 markets nationwide — a scale that positions this latest acquisition as one piece of a much larger, sprawling operation rather than a standalone bet.

Leadership's Take on the Acquisition

Robert Bronstein, chief executive officer of The Scion Group, praised the portfolio's original developer in announcing the deal. "Jared Schenk is one of the true pioneers of off-campus student housing, and he has built an incredible portfolio of high-quality communities," Bronstein said. "This transaction provides a comprehensive exit for him and his investors. Scion is pleased to add another successful portfolio execution to our track record, and we are even more excited to welcome these communities to our portfolio."

Limited Details Beyond the Announcement

The parties involved did not respond to messages seeking further comment Tuesday, and counsel information for the transaction was not immediately available.