HH Group's $1B AUM Milestone: Strategic D.C. Student Housing Acquisition

HH Group, a vertically integrated private equity real estate firm specializing in student housing, has acquired Varsity on K, a 197-unit apartment community in Washington, D.C.'s West End, adjacent to George Washington University. This strategic purchase, completed through HH Fund, not only expands HH Group's presence in the nation's capital but also pushes the firm's assets under management past the $1 billion milestone, a testament to its disciplined growth strategy.

The property, located at 950 24th Street NW, is within walking distance of GWU's main campus, the GWU Hospital, the Kennedy Center, and the Foggy Bottom-GWU Metro station. Its prime location offers convenient access to Georgetown, the White House, and major employment centers, making it a highly desirable address for students and young professionals alike.

Gary Chen, Founding Partner and Chief Investment Officer of HH Group, emphasized the significance of the milestone: "Reaching more than $1 billion in assets under management is an important milestone for HH Group, but more importantly, it reflects the discipline behind how we have grown the platform. Varsity on K is representative of the opportunities we continue to pursue: well-located assets with durable demand drivers, attractive long-term fundamentals, and meaningful potential for value creation."

The acquisition aligns with HH Group's strategy of investing in supply-constrained, university-anchored markets. Tony Shen, Founding Partner and COO, noted, "Varsity on K reflects the investment characteristics we prioritize: an irreplaceable location adjacent to a leading university, limited new supply, and durable demand in a major urban market. This acquisition strengthens our Washington, D.C. portfolio and underscores our continued confidence in education-anchored markets."

Varsity on K offers 21 floor plans, from studios to three-bedroom apartments, all fully furnished with modern kitchens, stainless steel appliances, and high-speed internet. Community amenities include a fitness center, resident lounge, study rooms, and an outdoor courtyard with a fire pit and grilling stations.

HH Group plans to rebrand the community as Haven on K and implement a comprehensive repositioning program. This includes refreshing common areas, completing targeted capital improvements, transitioning management to HH Red Stone, and centralizing asset, leasing, and marketing management to enhance operational efficiency and resident experience. The firm's integrated approach aims to unlock the property's potential and drive long-term value.

Lee Chen, Managing Director of HH Fund, explained the timing: "We have always believed compelling opportunities emerge when short-term market sentiment diverges from long-term fundamentals. We see that opportunity in Washington, D.C. today. The market combines a highly educated workforce, constrained housing supply, and neighborhoods where people genuinely want to live. Varsity on K allows us to acquire a high-quality asset at an attractive basis and apply our hands-on operating approach to unlock its potential."

With over 10,000 beds under management and a portfolio of 28 properties, HH Group continues to expand its national footprint. This acquisition not only strengthens its D.C. presence but also reinforces its position as a leading operator in the student housing sector, recently recognized as a Top 10 Student Housing Company by J Turner Research. The firm's growth in D.C. allows for deeper market knowledge and operating efficiencies, positioning it for continued success.

For more information about HH Group and its divisions, visit HHFund.com and HHRedStone.com.