Ares Invests $435M in US Student Housing
Acquiring 2,316 beds near top universities, Ares and Scion's second major deal in 2026 totals $1.35 billion
Ares Management Corporation and The Scion Group have acquired four US student housing communities for approximately $435 million, adding 2,316 beds near the University of Georgia, University of Tennessee, and Texas State University.
The acquired properties are located in markets where Scion already operates, which should make integration and management more efficient. This acquisition is the second major transaction for the Ares-Scion partnership in 2026, following their $910 million acquisition of 12 student housing communities in May.
The two 2026 acquisitions together represent roughly $1.35 billion of student-housing investments. Scion will operate nearly 117,000 beds across 187 communities in 92 US markets after the acquisition.
## Why it matters Student housing can be less sensitive to the broader economic cycle than conventional residential or commercial real estate. College enrollment can remain comparatively resilient even during weaker economic periods. This makes the sector an attractive investment opportunity, particularly for companies like Ares Management Corporation, which is listed on the NYSE under the ticker symbol ARES.
The partnership between Ares and Scion is strategic, as Scion is a specialized student-housing owner and operator. The new properties are already in markets where Scion has an operating presence, allowing the partnership to capture operating efficiencies while reducing the execution risk associated with the acquisition.
The acquisition is part of Ares' strategy to scale its student housing platform, and the company is effectively building a larger student-housing platform rather than making an isolated property investment. With the latest portfolio concentrated around large public universities, Ares is gaining exposure to a relatively durable source of housing demand.
## What happens next As the demand for student housing remains resilient, Ares Management Corporation and The Scion Group are well-positioned to benefit from their investment. With Scion's expertise in operating student housing communities and Ares' investment capabilities, the partnership is likely to continue to grow and expand its presence in the US student housing market.
