Q&A: Fred Pierce on coronavirus and student housing
Fred Pierce is the founder and CEO of Pierce Education Properties (PEP), a privately held owner/manager of student housing nationally. Founded in 1995, PEP has a portfolio of nearly $1 billion in student housing.
Pierce discusses the coronavirus and its impact on college students. His company has more than 23,000 purpose-built student-housing beds in more than 23 cities and 24 major D-1 public universities.
1. What is the impact of the school closings caused by coronavirus on student housing?
Thus far, the only measurable impact of the coronavirus on student housing has been the pause that has been communicated by the agencies related to debt refinancing and new financing activity. Agency terms have tightened up, and I don’t expect a lot of new debt to close with the agencies until the picture regarding fall classes becomes clearer. There has also been a chilling effect on investment sales, due t