Hawkins Way Capital and Varde Partners Acquire East Village Student Housing Property at 135 E. 12th St.
Hawkins Way Capital and joint venture partner Varde Partners have acquired 135 East 12th Street, a purpose-built student housing property in Manhattan's East Village, the firms announced Aug. 17. The property, formerly known as Loeb Hall and operated as a residence hall for The New School, will be repositioned under Hawkins Way Capital's FOUND Study student housing brand. The transaction marks the firm's third consecutive Manhattan FOUND Study acquisition in 2026.
Deal Details and Property Background
The property at 135 East 12th Street was previously The New School's oldest student housing complex, operated under the Loeb Hall name. Student reporting at The New School indicated the building was removed from the university's 2026–2027 housing options and rate sheets as of mid-May 2026. The sale price was not disclosed.
Because the building was originally designed and constructed for student housing, Hawkins Way Capital characterized the acquisition as carrying lower repositioning risk than conversions from other asset classes. The firm plans renovations to enhance resident amenities and the overall living experience before relaunching the property under the FOUND Study platform.
The property's structure is designed to accommodate a mix of direct lease and master lease arrangements, allowing Hawkins Way Capital to serve both individual students and academic institutions. The building sits within what the firm describes as Manhattan's premier educational corridor, with New York University, The New School, The Cooper Union, School of Visual Arts, Baruch College, St. John's University and the Fashion Institute of Technology all located nearby. Residents have access to the 4, 5, 6, N, Q, R, W and L subway lines.
Hawkins Way Capital's Expanding FOUND Study Platform
The East Village acquisition is the latest in a rapid series of Manhattan student housing deals by Hawkins Way Capital. In June 2026, the firm acquired 117 West 70th Street on the Upper West Side, a 382-unit student housing property, for $80 million. That transaction included a long-term master lease with AMDA, the American Musical and Dramatic Academy, executed concurrently with the sale. Earlier in 2026, Hawkins Way Capital acquired 81 East 3rd Street on the Lower East Side — a 100-bed student housing community — for $28 million, or $280,000 per bed, from ANS Holdings, branding it FOUND Study Lower East Side.
The firm's relationship with The New School spans multiple transactions. In July 2024, Hawkins Way Capital acquired a 122-unit student housing building on West 20th Street in Chelsea from The New School for $30 million, later branded FOUND Study Chelsea. The Loeb Hall acquisition represents a second transaction sourced from The New School's portfolio.
Together, the FOUND Study properties form a cluster across Manhattan neighborhoods — Chelsea, the Lower East Side, the Upper West Side and now the East Village — each positioned near major university catchment zones. Hawkins Way Capital manages more than $3 billion in assets under management and describes its investment approach as focused on value-add and opportunistic strategies across asset classes and geographies.
About the Joint Venture Partners
Varde Partners, the capital partner in the joint venture, 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. Värde 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.
Ross Walker, Managing Partner of Hawkins Way Capital, commented on the acquisition: "We've long been looking for the right opportunity in this neighborhood, and this property represents an ideal addition to our portfolio. Its location, existing student housing infrastructure and flexibility put us in an ideal position to deliver high-quality accommodations in one of the country's strongest urban student housing markets while continuing to expand the FOUND Study platform."
Market Context and Strategy
Hawkins Way Capital's FOUND Study strategy targets well-located urban assets that serve students and academic institutions in markets characterized by limited housing supply. The East Village and surrounding Union Square area represent one of New York City's most student-dense neighborhoods, with multiple major institutions drawing a large and consistent population of student renters.
The firm's repeated acquisition of assets previously held or operated by The New School reflects a broader trend of universities re-examining their real estate holdings and housing obligations, with private operators stepping in to reposition legacy dormitory stock under market-rate or institution-partnered structures. The FOUND Study platform's dual-track leasing model — combining direct student leases with institutional master leases — is designed to provide stable occupancy across varying demand conditions.
Sources
Hawkins Way Capital press release via PR Newswire, Aug. 17, 2026