The Scion Group and Ares Management Announce $910 Million Student Housing Portfolio Acquisition

The Scion Group and affiliates of Ares Management have announced the formation of a strategic partnership focused on off-campus student housing, with the partnership's inaugural transaction being the acquisition of a 12-property, 7,578-bed portfolio for approximately $910 million. The Scion Group will serve as operating partner in the venture, the firms announced May 20, 2026.

The portfolio serves students at leading universities across the United States, including the University of Notre Dame, The Ohio State University, and James Madison University. Based on the announced price and bed count, the deal implies a value of approximately $120,000 per bed.

Inaugural Transaction Marks New Partnership in Student Housing

The partnership's stated focus is on high-quality assets in markets characterized by strong enrollment fundamentals and limited new supply — a combination the firms said underpins their shared conviction in the long-term strength of the student housing sector.

"This transaction represents important milestones for Scion," said Rob Bronstein, Chief Executive Officer of The Scion Group. "We are beginning a partnership with Ares, one of the leading asset management firms globally, at the same time Scion's owned portfolio now totals over 105,000 beds, making Scion the world's largest owner of student housing. This sector continues to demonstrate resilient demand characteristics, and we are pleased to expand our platform alongside Ares."

Andrew E. Holm, Head of U.S. Diversified Equity for Ares Commercial Real Estate, said the transaction demonstrates the firm's ability to execute on large, complex opportunities. "By combining our scaled real estate platform with Scion's strong capabilities, we believe we are well positioned to unlock value across this portfolio and capitalize on the continued institutionalization of the student housing sector," Holm said.

Scion's Capital Deployment and Portfolio Scale

Since 2016, The Scion Group has deployed approximately $10.2 billion of capital, including approximately $3.4 billion in the past 24 months, according to the firm. The Scion Group's portfolio now spans more than 105,000 beds across 161 communities in 90 markets throughout the United States.

With this acquisition, The Scion Group says it becomes the world's largest owner of off-campus student housing. The transaction adds 7,578 beds across 12 properties to the firm's existing platform.

Structural Trends Cited in Student Housing

The firms framed the transaction against broader structural trends reshaping the student housing industry, including the consolidation of a historically fragmented market and the continued movement of institutional capital into operationally intensive, need-based real estate. The partnership's stated focus on markets with limited new supply reflects a strategy the firms said supports asset values and occupancy over time.

The portfolio's exposure to universities such as the University of Notre Dame, The Ohio State University, and James Madison University reflects a focus on institutions with what the firms described as strong enrollment fundamentals.

Partnership Structure

The Scion Group and Ares Management structured the venture with Scion as the operating partner. The seller of the 12-property portfolio, the specific property addresses, and the debt structure associated with the transaction were not disclosed by the firms.

The Scion Group said it intends to continue leading the evolution of the student housing sector, with the Ares partnership representing one component of a broader platform-building strategy.

About the Firms

The Scion Group is a student housing operator and asset manager. Ares Management Corporation is a global alternative asset management firm with a real estate platform that invests across equity and debt strategies.

Sources: The Scion Group press release, May 20, 2026. https://thesciongroup.com/scion-ares-student-housing-acquisition/.