Sawtelle-based MJW Investments, a real estate powerhouse with $1.5 billion in assets under management, is doubling down on the resilient student housing market with the launch of its first-ever fund.

Targeting $75 million to $100 million in capital, the new investment vehicle is designed to scale the firm’s long-standing expertise in student housing by acquiring and revitalizing properties near major universities nationwide.

President and Founder Mark Weinstein noted that while the company has been active in this niche market for nearly two decades, the fund provides a structured opportunity for outside investors to participate, requiring a minimum commitment of $100,000 alongside MJW’s own $4.5 million stake.

“I haven’t done a fund before, and I think it’s advantageous economics for the investors, and it’s a good way to grow your company, and also to get my other employees more involved,” Weinstein said. “They help create it. They’re more hands-on with this than they were in the creation of my business, and so it provides opportunities well into the future for them to be involved.”

Weinstein said the fund could take up to two years to close, but he hopes to close sooner. With it, he’s looking to purchase six to eight student housing assets that the company will upgrade.

The fund will target assets costing $35 million or less, with most priced between $18 million and $25 million. For some larger deals, Weinstein said the company may get a partner, in which case each firm would put up some money to buy a larger property.

“You don’t have competition from institutional capital, so there’s much more opportunity,” when it comes to the size of the deals his firm is exploring, he said, adding that institutional capital tends to go for much larger properties and portfolios.

The fund will allow MJW to close on properties quickly, he said, since the firm will not have to raise funds for individual properties as they become available. That gives MJW a competitive edge.

Once the fund closes, Weinstein expects to invest the funds in two to three years, with assets held for three to five years thereafter.

Generally speaking, MJW holds its assets longer, but Weinstein said his firm will sell properties purchased with fund-raised capital sooner to meet investors’ expectations. For the assets in the fund, he added that MJW looks for 5% cash-on-cash – meaning that if $1 million is spent on a property, it would earn $50,000 a year, or 5%.

Weinstein hopes the fund will broaden MJW’s investment base. Founded in 1983, the firm has grown from smaller deals to a nationwide footprint, and Weinstein said the fund is the next part of its growth.

Student housing is ‘resilient’

Some see student housing as a safe investment.

“We’ve been doing student housing a long time and have been very successful…a lot of people have multifamily exposure…it’s a lot different. Student housing is a lot more specialized, and there’s a lot more opportunity… it’s a more resilient asset class,” Weinstein said.

“When things aren’t going well in the economy, people are going to school. There’s a real demand driver,” he added.

During the pandemic, he said he collected 99% of rent at his student housing properties, while other multifamily properties “took a dive.”

According to a Yardi Matrix study released earlier this year, preleasing for the 2026-2027 academic year is tracking ahead of last year, with some large markets already more than 80% leased as of February.

The group found that more than 28,000 beds would be delivered during the upcoming academic year, a 12% year-over-year increase but below long-term averages.

And according to Statista, the average occupancy rate for off-campus accommodations has been elevated since before the Covid-19 pandemic began.

David McCullough, a student housing expert with McCullough Landscape Architecture, said demand for student housing depends partially on the market.

He said he’s mainly seeing new student housing developments being created both on and off campus – some with creative approaches to financing and construction, considering “financing mechanisms have become difficult these days because of interest rates and the cost of construction,” he said.

“There’s such an incredible need out there. The colleges are realizing that, but it’s just so expensive and it’s hard to find capital,” he added.

McCullough said more large-scale projects were being built because the cost per unit decreases as more units are built, and some unique building techniques, such as modular construction, are being considered.

He isn’t seeing as many firms like MJW that are remodeling buildings but seeing more new developments instead.

Looking ahead, he thinks more firms will start renovating older units to bring them up to current market standards as more is developed.

Value-add opportunities

Weinstein said that MJW is looking for “affordable assets, not high-end properties” where it can add value. He added that he wanted properties that were “affordable to the masses” and not try to compete with high-end assets.

In some instances, Weinstein said assets are either under- or mismanaged. MJW can improve property management and as a result add value.

In other circumstances, the firm may go in to update units, add a clubhouse or make other upgrades.

Weinstein said that because there are times of year when students are not living in the units, it is easier to make updates without losing money than in traditional multifamily housing properties.

“There’s a better income flow because of the continuity of income,” he said.

He called these assets, which have a parental guarantee, an almost “bondable investment because of the parents behind it.”

Desirable areas for investment

MJW is targeting student housing properties near Tier 1 research universities with Division I athletic programs.

Weinstein said markets like Utah, Alabama, Auburn, Mississippi and Michigan are of particular interest because of their enrollment, athletics, and the fact that they are markets where developers are “not overbuilding.”

“If you go to a school that is supply-constrained, your existing properties are going to be worth more,” he said.

Once too many investors come to the market, Weinstein said he sells.

MJW doesn’t currently have properties near the University of Southern California or the University of California Los Angeles, but Weinstein said he hopes to have some in the future, adding that USC is of particular interest.

“It has older stock,” he said. “There’s more opportunity to do rehabilitation.”