Scion Group and Ares Launch Joint Venture with $910 Million Student Housing Portfolio Acquisition
The Scion Group and an Ares Management Corporation real estate fund have announced the formation of a new joint venture focused on investing in off-campus student housing communities across the United States. The partnership begins with the acquisition of a 12-property portfolio comprising 7,578 student housing beds in a transaction valued at approximately $910 million.
The portfolio was acquired from Harrison Street Asset Management, with Scion serving as the operating partner for the assets. The acquisition represents one of the largest student housing transactions of the year and highlights growing institutional interest in the sector as demand for high-quality off-campus housing continues to rise.
According to the companies, the joint venture will focus on premium student housing properties located in university markets with strong enrollment trends, limited new supply and long-term demand fundamentals. The portfolio includes properties serving several major universities across the country, including the University of Florida, Auburn University, University of Notre Dame, The Ohio State University and James Madison University.
The transaction reflects both firms’ confidence in the long-term stability and growth potential of the student housing market. Industry analysts continue to view student housing as a resilient real estate sector due to steady enrollment patterns, recurring housing demand and limited availability of modern accommodations near many university campuses.
Robert Bronstein, Chief Executive Officer of The Scion Group, described the transaction as a significant milestone for the company and its continued expansion in the student housing sector.
“This transaction represents important milestones for Scion,” Bronstein said. “We are beginning a partnership with Ares, one of the leading asset management firms globally, at the same time Scion’s owned portfolio now totals over 105,000 beds, making Scion the world’s largest owner of student housing. This sector continues to demonstrate resilient demand characteristics, and we are pleased to expand our platform alongside Ares.”
The acquisition further strengthens Scion’s position as one of the leading operators and investors in student housing worldwide. Since 2016, the company has deployed approximately $10.2 billion in capital, including nearly $3.4 billion over the last 24 months alone. The company’s rapid growth has been fueled by increasing institutional interest in student housing assets and a broader shift toward professionally managed, operationally intensive residential properties.
Scion’s leadership noted that the student housing industry continues to benefit from favorable long-term fundamentals, including rising university enrollment, increasing demand for amenity-rich housing and limited new supply in many top-tier university markets. These trends have attracted growing amounts of institutional capital into a sector that was once dominated by smaller regional owners and fragmented operators.
For Ares, the transaction represents another major investment in alternative residential real estate and highlights the company’s ability to execute large-scale transactions through strategic operating partnerships.
Andrew Holm, Head of U.S. Diversified Equity for Ares Real Estate, said the partnership combines Ares’ large-scale investment platform with Scion’s specialized operating expertise.
“This transaction underscores Ares Real Estate’s ability to execute on large, complex opportunities through our scale, sector experience and operating relationships,” Holm said. “By combining our scaled real estate platform with Scion’s strong capabilities, we believe we are well positioned to unlock value across this portfolio and capitalize on the continued institutionalization of the student housing sector.”
The partnership marks the first investment collaboration between Scion and Ares, potentially paving the way for additional acquisitions and developments in the future. Both firms indicated that they see significant opportunities for continued investment in the student housing market as universities across the country face growing demand for quality off-campus accommodations.
The financing for the transaction was arranged with assistance from Walker & Dunlop, while BMO led the financing package.
Industry experts note that student housing has increasingly become an attractive asset class for institutional investors seeking stable occupancy and long-term income generation. Unlike traditional multifamily housing, student housing properties often operate on annual leasing cycles tied to university calendars, which can provide predictable demand patterns and consistent occupancy levels.
Additionally, many major universities continue to experience enrollment growth without corresponding increases in on-campus housing capacity. This imbalance has created sustained demand for professionally managed off-campus housing communities that offer modern amenities, convenience and proximity to campus facilities.
The newly acquired portfolio aligns closely with these trends, consisting of properties located near well-established universities with strong student populations and favorable long-term enrollment outlooks. Many of the properties are positioned in markets where new student housing development remains limited due to rising construction costs, land constraints and financing challenges.
Scion’s operational role within the joint venture is expected to focus on property management, leasing operations, resident services and long-term asset optimization. The company has built a reputation for managing large-scale student housing communities while maintaining strong occupancy and resident satisfaction levels.
The transaction also reflects broader changes taking place within the real estate investment landscape. Institutional investors are increasingly targeting specialized housing sectors such as student housing, senior living and workforce housing as they seek diversification beyond traditional office and retail assets.
Ares Real Estate, one of the world’s largest vertically integrated real estate investment platforms, currently manages approximately $117 billion in assets under management as of March 31, 2026. The company operates through a global network of more than 700 professionals across 38 offices throughout the Americas, Europe and the Asia-Pacific region.
Its investment strategies span both equity and debt investments across a broad range of property sectors and risk profiles. The company’s partnership with Scion highlights its growing focus on alternative residential sectors that combine operational expertise with long-term demographic demand.
As the student housing sector continues evolving, industry observers expect additional consolidation and institutional investment activity in the coming years. Large-scale operators with specialized expertise and access to capital are increasingly positioned to dominate the market as universities and students place greater emphasis on quality housing experiences.
For Scion and Ares, the new joint venture establishes a strong platform for future growth while reinforcing confidence in the long-term outlook for U.S. student housing. With demand for off-campus accommodations remaining strong and institutional interest continuing to rise, both firms appear well positioned to capitalize on the sector’s ongoing expansion and transformation.
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