HH Group, a vertically integrated private equity real estate firm specializing in student housing, announced the acquisition of Varsity on K, a 197-unit apartment community at 950 24th Street NW in Washington, D.C.'s West End, adjacent to George Washington University. The deal, completed through HH Fund, expands the firm's presence in the nation's capital and boosts its assets under management beyond $1 billion. The property will be rebranded as Haven on K.
The acquisition aligns with HH Group's focus on high-barrier-to-entry university markets. Varsity on K is within walking distance of GWU's main campus, the university hospital, the Kennedy Center, and the Foggy Bottom-GWU Metro station, offering convenient access to Georgetown, the White House, and major employment centers. This location provides durable demand drivers, as noted by Gary Chen, Founding Partner and CIO: "Reaching more than $1 billion in assets under management is an important milestone, but more importantly, it reflects the discipline behind how we have grown the platform."
The property will be managed by HH Red Stone, HH Group's property management arm, which was recently named a Top 10 Student Housing Company by J Turner Research. This marks HH Red Stone's third managed asset in D.C., enabling deeper market knowledge and operating efficiencies. Tony Shen, COO, emphasized: "This acquisition strengthens our Washington, D.C. portfolio and underscores our continued confidence in education-anchored markets."
HH Group plans a comprehensive repositioning program, including rebranding to Haven on K, refreshing common areas, and upgrading amenities. Planned capital improvements will target mechanical systems, security, and building upgrades. Operational integration will apply HH Red Stone's institutional systems and hospitality-driven execution. Centralized asset management, leasing, and marketing will optimize occupancy and net operating income.
Lee Chen, Managing Director of HH Fund, highlighted the investment rationale: "Compelling opportunities emerge when short-term sentiment diverges from long-term fundamentals. We see that in D.C. today. Varsity on K allows us to acquire a high-quality asset at an attractive basis." The market's constrained housing supply and educated workforce make it an attractive investment despite broader uncertainties.
HH Group's portfolio now includes over 10,000 beds across 28 properties, focusing on university-anchored markets. The firm's integrated platform, founded in 2015 and headquartered in Silver Spring, Maryland, aims to create long-term value through disciplined underwriting and operational excellence. For more information, visit HHFund.com and HHRedStone.com.
