Hawkins Way Capital and Varde Partners Acquire East Village Student Housing Property for $28 Million

Hawkins Way Capital and joint venture partner Varde Partners have acquired a student housing property at 81 East 3rd Street in Manhattan's East Village for $28 million, the firms announced Aug. 5. The off-market transaction adds to Hawkins Way Capital's growing FOUND Study student housing portfolio and extends the platform's footprint in a neighborhood characterized by dense student population and limited housing supply.

Deal Details and Property Profile

The property at 81 East 3rd Street, New York, NY 10003, was previously developed and operated as a privately owned student residence. Unlike traditional dormitory accommodations, the building features apartment-style layouts that offer residents a more conventional living experience. The asset also carries dual-use optionality, with a flexible design that allows it to serve either student housing or conventional multifamily purposes — a feature that broadens the investment's long-term repositioning potential.

The $28 million acquisition was completed off-market, with Hawkins Way Capital serving as sponsor and Varde Partners participating as capital partner. Unit count, square footage, and year of construction were not disclosed in the announcement.

Strategic Fit Within the FOUND Study Platform

The East Village acquisition advances Hawkins Way Capital's FOUND Study strategy, which focuses on acquiring well-located urban assets that serve students and academic institutions in markets with limited housing supply and durable long-term fundamentals. The property sits in close proximity to New York University and other major educational institutions, placing it within one of Manhattan's densest student populations.

"The East Village has long been a market we have targeted, given its concentration of students, proximity to leading universities, and enduring real estate fundamentals," said Ross Walker, Managing Partner of Hawkins Way Capital. "This acquisition expands our JV's presence in one of Manhattan's most dynamic neighborhoods and reinforces our strategy of investing in well-located urban student housing assets positioned to benefit from sustained demand."

Hawkins Way Capital describes FOUND Study as a platform designed to provide high-quality, affordable housing options by acquiring urban assets in markets where student demand is strong and new supply is constrained. The East Village, where zoning restrictions and land costs limit ground-up development, fits that profile directly.

About the Joint Venture Partners

Hawkins Way Capital is a vertically integrated real estate investment firm with more than $3 billion in assets under management. The firm pursues value-add and opportunistic investments across multiple asset classes and geographies, with the FOUND brand spanning both student housing and hospitality through its FOUND Study and FOUND Hotels platforms.

Varde Partners is a global investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $110 billion across the credit quality and liquidity spectrum and currently manages $15 billion in assets. Varde invests across private and public markets with a focus on asset-based finance, real estate, corporate credit, and Asia credit, with investment teams and partnerships in North America, Europe, and Asia Pacific.

Market Context: Urban Student Housing in a Supply-Constrained Environment

The East Village acquisition reflects broader investment themes playing out across the commercial real estate landscape. Multifamily and residential-adjacent assets have remained among the more resilient property types as investors navigate ongoing challenges in office and select retail sectors. Urban student housing benefits from structural demand drivers — large universities with limited ability to add on-campus beds in high-barrier locations, walkable neighborhoods that attract both students and young professionals, and low vacancy rates in well-located stock.

New York University, which sits in close proximity to 81 East 3rd Street, has historically faced oversubscribed on-campus residence halls, pushing students into the surrounding private rental market. That dynamic, combined with the East Village's position as one of Manhattan's tightest rental submarkets, underpins the investment thesis Hawkins Way Capital and Varde Partners are pursuing through the FOUND Study platform.

The property's apartment-style configuration and explicit dual-use design also position the asset for potential future optimization, whether through student leasing, conventional multifamily use, or a combination of both — providing flexibility as demand patterns evolve across urban renter cohorts.