Sol y Luna Sells for $203 Million: A Record That Redefines Student Housing Resilience
From Uncertainty to Unprecedented Returns
In one of the largest single-asset student housing sales ever recorded, Sol y Luna Apartments in Tucson, Arizona, recently sold for $203 million to Vesper Holdings. This transaction ranks among the top three highest student housing sales in history and shows renewed confidence in the stability and strength of the student housing market.
For investors looking into 1031 Exchanges, DSTs, or TIC structures, this record sale clearly illustrates what is possible when strategy, timing and asset quality come together.
Resilience in the Face of Uncertainty
Sol y Luna is more than just record-breaking numbers; it’s about resilience.
Patrick Nelson, CEO of ICON 1031, closed the acquisition in January 2020, just weeks before COVID-19 prompted universities nationwide to shut down. While many owners encountered vacancy challenges and uncertainty, the management team remained steadfast, focusing on both student safety and investor outcomes.
Through careful asset management and flexible operations, the property not only continued to remain leased, it achieved record-high occupancy by fall 2022. This performance highlights the lasting strength of purpose-built student housing. Universities continue to attract enrollment even during downturns. Students still need quality housing near campus, regardless of overall market conditions. Premium, professionally managed assets consistently outperform less strategic alternatives. In short, student housing remains one of the most resilient asset classes available to real estate investors today.
Why This Matters for 1031 Exchange & DST Investors
For those seeking stable income, long-term growth, and tax efficiency, Sol y Luna’s success conveys three important lessons:
1. Performance Under Pressure
Despite being acquired just before the pandemic, Sol y Luna delivered exceptional results. Its $203 million sale reflects institutional confidence in the sector. This shows that premium student housing can not only survive volatility but thrive through it. For investors in DSTs or TICs, this performance emphasizes why student housing remains a favored choice for diversification and stability.
2. Location Always Wins
Situated directly across from the University of Arizona, Sol y Luna offered a prime pedestrian-to-campus location with unmatched access to academic and social life. Even when in-person learning paused, its location remained a significant asset. Proximity to campus consistently drives higher occupancy, faster leasing, and greater rent resilience—three critical components of a durable real estate investment.
3. Experienced Management Creates Value
Timing and location matter, but execution ultimately determines returns. Patrick Nelson’s ability to navigate a global shutdown, protect students, and maintain strong leasing performance demonstrates the importance of effective management. For passive investors participating through a 1031 DST structure, working with an experienced sponsor who understands student housing operations can greatly impact achieving consistent income and appreciation.
Inside the Property
Location: University of Arizona, Tucson
Total Units: 340
Beds: 972
Average Unit Size: 1,014 sq. ft.
Configuration: One- to five-bedroom floor plans
Features: 13 and 15-story towers with panoramic campus views, retail space, and resort-style amenities
Completed: 2014
Sol y Luna isn’t just another student housing project; it’s a model for what modern university living can look like: luxury, convenience, and community designed for today’s student lifestyle.
The Bigger Picture for Investors
The post-pandemic landscape has accelerated demand for high-quality, amenity-rich student housing in strong university markets. Enrollment at top institutions continues to rise while on-campus housing supply remains limited. That imbalance creates steady opportunities for both institutional and individual investors.
For those transitioning out of active property management with a 1031 Exchange, student housing DSTs provide access to institutional-grade assets with reliable cash flow, tax deferral, and hands-off ownership.
At ICON, we focus on identifying and structuring investments that balance income stability with long-term growth. The record-breaking sale of Sol y Luna serves as a powerful reminder that when you combine location, management, and strategy, student housing delivers.
The Bottom Line
The $203 million sale of Sol y Luna is more than a success story, it’s proof of the resilience of its asset class that continues to exceed expectations. For investors seeking predictable income, portfolio diversification and protection against economic volatility, student housing is one of the most compelling opportunities in today’s market.
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