History

With the founding of the University of Bologna, the world’s first college students find the world’s first student housing and begin the age-old tradition of skipping early morning classes.

Rob Bronstein, then a commercial lease broker, works on a series of office conversion projects for The School of the Art Institute of Chicago. Seeing the opportunity as demonstrated by these projects and analyzing national demographics to forecast a need for modern student housing, Rob Bronstein and his brother Eric, then practicing corporate law, think of a potential business to address this opportunity. The two decide to launch a company, with its first office in Rob’s spare bedroom.

Rob and Eric meet student housing veteran Eric Luskin, then serving as Director of Housing at DePaul University, who later joins Scion. Scion moves into its first office space at 368 West Huron Street in Chicago. By year-end, Scion has its first clients: Silver Lake College in Manitowoc, Wisconsin, and DePaul University in Chicago.

Scion becomes lead advisor in the conception, financing and development of the ground-breaking, three-university, 1,620-bed collaboration called University Center of Chicago. Once opened in the City’s South Loop, it will change the neighborhood and serve as a model for many other projects nationwide.

Scion begins acquiring real estate as a land banking partner to DePaul University, with its first acquisition a single-family home adjacent to the DePaul campus. Scion also begins managing student housing when, in partnership with DePaul, it converts a 119-room extended-stay hotel on downtown Chicago’s Michigan Avenue into DePaul’s first housing outside its Lincoln Park campus. The management office in the building also serves as Scion’s headquarters.

After being successfully financed with $151 million of investment-grade-rated, tax-exempt bonds, University Center is completed on-time and on-budget. Scion is part of the team awarded to open and manage the building.

Building on the success of the University Center project, Scion grows its consulting practice across the United States. Scion becomes one of only a handful of firms in the country with a recognized expertise in student housing advisory and planning services. Scion also expands its land banking work on behalf of Illinois State University.

Scion partners with various commercial real estate firms to develop some of the first-ever purpose-built urban student housing in the US, including The Automatic Lofts, Dwight Lofts and 1237 West in Chicago, and 2040 Lofts in Milwaukee.

Scion acquires its first private, off-campus student housing: the 160-bedroom “Lincoln Park Townhomes” in Normal, IL, serving Illinois State University. The purchase price is $5.1 million.

Scion acquires its first “value-add” rehab project, the 350-bedroom Heartland Ridge Apartments in Normal, IL. Investing in new flooring and furniture, flat-panel televisions and brightly colored accent walls was a novel concept in 2006 and served as the template for dozens of value-add projects later completed by Scion and emulated throughout the student housing sector to this day.

Scion expands into new office space on West Hubbard Street in Chicago. Through several expansions and renovations, this space serves as Scion’s home for the next nine years.

Scion begins partnering with institutional capital to acquire and rehab existing student housing properties in Florida, Illinois, Indiana and Wisconsin. It is in these acquisitions that Scion pioneers many of the value-add strategies and branding and customer experience initiatives that, while much more refined today, have provided the foundation of Scion’s growth and success.

Amid the global financial crisis, Scion acquires 1,575 beds in two communities at the University of Illinois from a receiver. With the properties less than 50% occupied and with deferred maintenance and operational challenges, Scion raises private funds and closes the acquisition in December 2008. Over the next few years, Scion will transform these assets, lease them to 100% and eventually sell them for a multiple of the original basis, standing today as one of the sector’s most successful operational turnarounds and economic returns.

Scion is selected by the University of Ontario Institute of Technology to develop a comprehensive housing strategic plan. After working on 70 campuses in the United States, this marks Scion’s first engagement in Canada.

With property values still depressed and many commercial real estate investors on the sidelines, Scion begins aggressively buying 5- to 15-year old purpose-built student housing. Though not particularly old, many of these properties need operational repositioning. In the course of these investments, Scion refines many of the operational strengths that are its hallmarks to this day.

Scion is retained by bondholders at tax-exempt bond financed student housing projects in Phoenix, AZ and Orlando, FL to advise on turn-around strategies for non-performing projects. These are among the first of the original wave of student housing public-private-partnerships to encounter performance issues. With its combination of a decade of advising colleges and universities, along with its growing operational expertise, Scion is uniquely qualified to assist these projects and their bondholders.

As part of a team that also includes local real estate firms American Nevada Companies and Vista Group, Scion is engaged to manage the entirety of on-campus housing at the University of Nevada Las Vegas, in a unique arrangement by a public university engaging private firms to operate existing residence halls. Within one lease-up, the Scion-led team is able to dramatically increase occupancy (to 100%) and financial performance. This success continues for over 10 years.

Following a successful 20-year career as a Wall Street M&A investment banker, Avi Lewittes joins Scion as Chief Investment Officer, adding a sophisticated and global perspective. Under his direction, Scion begins to lay the foundation for what will become among the sector’s most transformative capital relationships and transactions.

Scion continues to acquire existing student housing and surpasses 10,000 beds owned in various joint ventures, with equity partners including Real Estate Capital Partners, Behringer Harvard, Arch Street Capital, NorthStar Realty Capital and Virtus Real Estate.

The student housing industry commences a development boom that continues to this day, but while most are focused on high-amenity buildings at campuses of all types, Scion’s investment thesis states that market quality is paramount, followed by the capabilities of the operator, then location of the asset relative to campus and finally the physical asset itself. Scion’s then-contrarian point of view is later proven correct in development and sales trends.

Recognizing that available business intelligence tools for student housing marketing are lacking, Scion sets out to build proprietary software to solve key operational issues and prepare for scaled growth. Today, Scion has among the most sophisticated technologies available in all real estate, with applications expanded beyond leasing and marketing to encompass many aspects of operations, supporting investment underwriting and asset management, and providing data to benefit Scion’s Advisory Services clients.

While Scion becomes known as one of the top owners and operators in the student housing industry, its Advisory Services group continues to grow in both size and prestige. Scion marks over 150 college and university markets served, with the group’s headquarters in Chicago and with satellite locations in Toronto, Ontario and Irvine, California.

Scion partners with Fundamental Real Estate and Saban Capital to make several acquisitions that grow its portfolio to well in excess of 20,000 beds and $1.0 billion of assets. Scion continues to specialize in value-add repositioning of assets in quality markets.

Scion relocates to its new corporate headquarters to 444 North Michigan Avenue in Chicago. Eventually expanding to nearly 30,000 square feet of open and modern state of the art offices, with dedicated training facilities, this new space personifies Scion’s culture and commitment to its growing workforce and is a critical step in the growth that soon follows.

Scion announces a ground-breaking strategic partnership with GIC (the sovereign wealth fund of Singapore) and the Canada Pension Plan Investment Board. A nearly $1.5 billion equity commitment provides Scion with the capacity to aggressively grow and consolidate the student housing sector; the caliber and sophistication of this capital also gives Scion the backing to dramatically expand its world-class operating team.

The initial investment of a Scion affiliate, in partnership with sovereign investors GIC and CPPIB, is the $1.3 billion acquisition of University House Communities, a spin-off of the student housing platform of publicly-traded Inland American. Upon closing in mid-2016, Scion operates over 35,000 beds of student housing and has assets of over $2.5 billion.

After a nearly 40-year career in student housing, including service at the Illinois Institute of Technology, the University of Michigan and DePaul University, and later as Scion’s first employee, Eric Luskin becomes Senior Vice President Emeritus, providing continuing guidance and serving select legacy clients. Having won multiple industry awards and authoring countless articles and white papers while leading Scion’s advisory practice, Luskin’s legacy is one of enhanced professionalism, specialization and expertise across the industry.

Scion begins the process of developing what will become the sector’s first fully curated, experiential family of brands. Drawing on nearly 20 years of experience operating all types of student housing assets, Scion recognizes the need to create a distinctive family of brands for the student housing sector, as well as the opportunity in doing so.

Scion completes the recapitalization of successful partnerships with Fundamental Advisors, Virtus Real Estate and Arch Street Capital. A Scion affiliate, in partnership with sovereign investors GIC and CPPIB, completes three portfolio acquisitions. Scion affiliates own more than 46,000 beds and nearly $4 billion of student housing. At this point, Scion becomes the nation’s largest privately-held owner/operator of student housing.

In late 2017 and early 2018, a Scion affiliate, in partnership with sovereign investors GIC and CPPIB, completes the acquisition of 24 properties, for $1.1 billion. Scion’s earlier conviction about pursuing physical and operation upside is unabated, as this acquisition includes the most extensive value-add re-positionings in the company’s history.

Following a nationally competitive bid-process, Scion is selected to manage the first-ever on-campus housing at a Southern California community college. The 823-bed project opens in 2020 and serves students from Orange Coast College in Costa Mesa, California. Scion is responsible for marketing and leasing, operations and all residence life functions, in close collaboration with the College.

In late 2018, a Scion affiliate, in partnership with sovereign investors GIC and CPPIB, completes the then-largest single-asset transaction in U.S. student housing history. University View is located in College Park, Maryland and is purchased for over $230 million. This acquisition grows Scion’s portfolio to over 60,000 beds and $5 billion of asset value.

Scion officially begins to launch its new family of brands across its portfolio, with the introduction of the Redpoint brand in Denton, Texas.

Scion sells its ownership stake in some of its original value-add offerings, creating a successful realization as well as orienting its own portfolio toward newer, state-of-the-art housing. Following this disposition, Scion’s portfolio has an average age of under five years and an average distance-to-campus of 0.7 miles, With the quality of markets (as defined by enrollment size, graduation rates and academic prestige) now superior to any national student housing portfolio.

As of its 20th anniversary, Scion is North America’s largest privately‐held owner/operator of student housing, operating over 58,000 beds and managing $5 billion of assets in partnership with institutional investors, supported by a corporate staff of nearly 180 and a site-level team of over 1,300. During those 20 years, Scion’s Advisory Services group has served 222 clients in 38 US states, six Canadian provinces, plus Mexico and the UK, including 57 engagements completed in 2019.

As the COVID-19 pandemic unfolds, Scion communities remain open at near normal capacity and continue to safely provide all essential services to residents. It becomes clearer than ever that college-aged constituents value the entire college experience, not just taking classes to acquire a degree. Most students choose to continue their studies from the comfort and safety of Scion communities even when classes are online, utilizing the personal space in their apartments more than ever.

After testing the centralization of sales operations earlier, Scion fully implements centralized sales and leasing operations during a pandemic. The centralized model, building on scale and technology, yields efficiency and performance that are later expanded to several other operational functions.

Over a period of 90 days, Scion establishes new investment partnerships with two of the world’s leading real estate investors, adding 32 new communities and nearly 20,000 beds, representing $1.7 billion in project value. As a result, Scion becomes the global leader in purpose-built, off-campus student housing, operating 117 communities in 72 campus markets. The team of over 1,700 employees serves nearly 77,000 residents across the United States.

Scion strengthens existing investment partnerships, adding nearly 5,800 beds in 11 campus markets and growing its position as the global leader in purpose-built, off-campus student housing, now operating 127 communities in 78 US markets. Scion’s world-class operations team employs over 1,750 and has approximately $9 billion of assets under management.

As it continues to expand the expertise and tenure of its team, including a 25% increase in corporate-level employees in a year, Scion adds strategic leadership, including six new vice presidents with over 60 years combined experience in their respective fields.

Scion brings together all central teams on two circulating floors of state-of-the-art collaborative space at 401 N. Michigan Avenue, enhancing the employee experience and demonstrating its commitment to Chicago’s downtown.

Scion teams with an innovative AI firm to deliver a highly responsive, customized Scion-specific experience to prospects and residents alike. Through the entire customer journey, from leasing through 24-hour maintenance response through resident move-out, the power of conversational AI provides constant, real-time service and reporting to deliver an optimal resident experience.

Scion adopts enhanced quality and service standards, supported by new technology, to empower over 1,600 team members to deliver a world-class resident experience. These capabilities support expansion of a key investment partnership, with Scion adding nearly 11,000 beds to reach 140 communities in 82 campus markets and reaching $10.0 billion in assets under management.

Scion is proud to announce additional new leadership roles: Senior Vice President, Revenue Management; Director, Community Security; and Director, Facilities. These positions are made possible by Scion’s scale and underscore the firm’s dedication to innovation, operational excellence and prioritizing community safety and quality.

Scion celebrates 25 years of shaping the student living experience. This anniversary highlights decades of progress, groundbreaking partnerships and a forward-thinking vision. Scion continues to build on its heritage while driving future innovation.

Scion and an Ares Real Estate fund form a joint venture to acquire a 12-property, 7,578-bed student housing portfolio serving leading universities across the United States. The acquisition expands Scion’s platform to over 105,000 beds across 161 properties in 89 markets, establishing the firm as the largest owner and operator of student housing globally.

Within a single week, Scion closes two major acquisitions, bringing its portfolio to nearly 117,000 beds across 187 communities and 92 university markets. The transactions include the acquisition of the established operating platform of Student Quarters as well as a new portfolio investment alongside an Ares Real Estate fund. Together, the acquisitions mark one of the most significant periods of growth in Scion’s history and further strengthen its position as the world’s largest owner and operator of student housing.