Treo Group Secures $132 Million Refinancing for Student Housing Near University of Miami

In a significant move for the student housing market, Treo Group has successfully secured $132 million in refinancing for its prominent projects located near the University of Miami’s Coral Gables campus. This financing, provided by Miami-based Ocean Bank, underscores the growing demand for quality student accommodations in the area, particularly as the university continues to attract a diverse and expanding student body.

Overview of the Vox I and II Complex

The refinancing pertains to the two-building complex known as Vox I and II, situated at 7025 and 7175 Southwest 59th Avenue, previously known as 5949 Southwest 72nd Street. This prime location is not only adjacent to the South Miami Metrorail station but also near Underline Park, making it an attractive option for students seeking convenience and accessibility.

The Vox complex boasts a total of 262 units, providing 726 beds, along with a range of amenities designed to enhance the student living experience. Residents can enjoy pools, fitness facilities, and study lounges, as well as 15,700 square feet of retail space. The units vary in size, accommodating one to four bedrooms, catering to different preferences and budgets.

Development Timeline and Leasing Success

Treo Group completed the first building of the Vox complex in 2021, which included 99 units and 326 beds. Following this success, the firm secured $53 million in construction financing from FirstBank Florida and Abanca for the second phase, which was completed in August 2023. A spokesperson confirmed that both buildings are now fully leased, reflecting the high demand for student housing in the area.

As the academic year approaches, prospective tenants can expect competitive pricing, with rents for a one-bedroom unit starting at $2,899 for the school year beginning in August 2026. This pricing strategy highlights the robust rental market for student accommodations in South Miami.

Treo Group: Leadership and Vision

Treo Group, a Miami-based real estate development firm, is led by a team of experienced professionals: Otto Boudet-Murias, Rolando Delgado, Eduardo Garcia, and Carlos Ortega. The firm has been leasing the 6.2-acre development site from Miami-Dade County since launching the project in 2020, initially securing a $33.25 million construction loan from Centennial Bank. Their vision for the Vox complex reflects a commitment to providing high-quality living spaces that cater to the needs of modern students.

The Growing Appeal of Student Housing

Student housing has emerged as a favored asset class among real estate investors, driven by strong rent growth, stable demand, and perceived resilience during economic downturns. Unlike traditional residential properties, student housing is typically rented on a per-bed basis, which can lead to higher overall returns for investors.

This trend is evident in the broader market, with significant investments being made in student housing across the country. For instance, Chicago-based Harrison Street Capital Partners recently closed a $2.5 billion investment fund targeting student housing, senior housing, and data centers. Similarly, Blackstone secured a $1 billion refinancing deal for part of its student housing portfolio last year, further illustrating the sector’s attractiveness.

Future Developments in South Florida

In South Florida, the demand for student housing continues to grow, with numerous projects in the pipeline aimed at University of Miami students. Notably, Capstone Collegiate Communities and Alta Development are collaborating on a 16-story, 189-unit luxury student housing project set to open in 2028. This project, along with others, indicates a robust future for student accommodations in the region, as developers respond to the increasing need for quality living spaces.

Conclusion

Treo Group’s recent refinancing of its Vox I and II projects marks a significant milestone in the evolving landscape of student housing near the University of Miami. With a strong leadership team, a commitment to quality, and a strategic location, Treo is well-positioned to capitalize on the growing demand for student accommodations. As the market continues to expand, the focus on innovative and appealing living environments will remain crucial in attracting and retaining students in South Miami.