Student housing projects financed through private placement (P3) have experienced a default in California this month. However, according to Archana Chandrasekhar, partner at Full Moon Capital, investors seem unfazed by the situation. "It does feel like investors are very comfortable with the space, even with the defaults," she said [1]. The full Moon Capital has been investing in student housing projects for several years and has not seen a significant impact on investor interest despite these defaults.
[2] reports that Full Moon Capital's confidence stems from their long-term outlook on the sector. They argue that while some individual projects may default, the overall demand remains strong due to increasing enrollment at universities across California. [1] also notes that investors are looking beyond single defaults and focusing more on the broader market trends.
Despite these positive sentiments, there is a recognition of risks within the industry. [3] highlights concerns about rising interest rates and their potential impact on student housing projects' profitability. The article suggests that while investor confidence remains high, caution is warranted given current economic conditions.