Charleston-based Henderson Park Capital Partners acquired its first out-of-state student housing property Tuesday, purchasing a 240-bed complex near Texas State University in San Marcos for $28 million.

The deal for Riverside Ranch Apartments marks Henderson Park’s expansion beyond South Carolina’s student housing market, where the firm has developed properties serving College of Charleston, University of South Carolina, and Clemson University students. The 120-unit complex sits on 12 acres along the San Marcos River, roughly two miles from the Texas State campus.

“This acquisition represents our strategic expansion into high-growth university markets with strong enrollment fundamentals,” said Henderson Park managing partner David Morrison in a statement. “Texas State’s continued growth mirrors what we’ve seen in Charleston’s higher education sector.”

The Charleston firm has built its portfolio around university towns experiencing population and enrollment growth, a strategy that aligns with broader trends in South Carolina’s real estate market. Texas State University enrolled more than 38,000 students in fall 2024, making it one of the fastest-growing universities in Texas.

Riverside Ranch features fully furnished apartments ranging from one to four bedrooms, with amenities including a resort-style pool, fitness center, and study lounges. Monthly rents range from $849 for shared four-bedroom units to $1,299 for one-bedroom apartments, according to property listings.

Henderson Park plans $2.4 million in renovations over the next 18 months, focusing on unit interiors, common areas, and technology infrastructure. The improvements will add high-speed internet, updated appliances, and enhanced security systems.

The Texas acquisition comes as Charleston’s residential market shows signs of cooling, with housing inventory surging 36% compared to last year. Henderson Park’s expansion suggests local real estate firms are seeking opportunities in markets with different fundamentals than Charleston’s maturing sector.

Student housing has proven resilient during economic downturns, with occupancy rates typically remaining stable due to consistent enrollment. Purpose-built student housing near major universities often maintains 90% occupancy or higher, industry data shows.

Henderson Park’s local portfolio includes developments near College of Charleston’s campus on the Peninsula and off-campus housing serving USC students in Columbia. The firm has focused on properties within walking distance or shuttle service to campus facilities.

Texas State University’s San Marcos campus sits between Austin and San Antonio, positioning it in one of the nation’s fastest-growing metropolitan corridors. The university has added more than 5,000 students over the past five years while expanding academic programs and research facilities.

The acquisition was financed through a combination of Henderson Park equity and a $19 million acquisition loan from Regions Bank. JLL Capital Markets arranged the debt financing and represented Henderson Park in the transaction.

Local real estate attorneys familiar with Henderson Park’s strategy said the Texas move reflects broader trends among Charleston-based investment firms seeking diversification beyond South Carolina’s borders.

“You’re seeing more Charleston real estate capital looking at secondary university markets with strong growth profiles,” said Sarah Chen, a commercial real estate attorney with McNair Law Firm. “The fundamentals that attracted investors to Charleston are present in these expanding university towns.”

Henderson Park was founded in 2018 by former executives from Charleston-based real estate firms. The company has raised more than $150 million in equity commitments from investors including Charleston-area family offices and regional pension funds.

The firm’s expansion coincides with increased competition in Charleston’s student housing market, where several national operators have entered in recent years. Purpose-built student housing near College of Charleston commands premium rents but faces zoning restrictions and neighborhood opposition on the Peninsula.

Texas State’s enrollment growth has outpaced on-campus housing construction, creating opportunities for private developers. The university provides housing for roughly 6,000 students, leaving more than 30,000 seeking off-campus options.

Henderson Park expects to complete the Riverside Ranch renovations by fall 2025, ahead of the university’s next academic year. The firm said it’s evaluating additional acquisition opportunities in Texas, North Carolina, and Georgia university markets.

The San Marcos market has attracted other national student housing operators, including American Campus Communities and CA Ventures, signaling institutional confidence in the area’s fundamentals.

Property management for Riverside Ranch will transition to Henderson Park’s in-house team, which currently oversees more than 1,200 student housing beds across South Carolina. The firm said it plans to hire local staff in San Marcos while maintaining oversight from its Charleston headquarters.

The acquisition reflects broader trends in Charleston’s real estate sector, where local firms have built expertise in niche markets before expanding regionally. Several Charleston-based developers have successfully replicated their models in similar Southeastern markets over the past decade.