LOS ANGELES — Two former USC fraternity houses have been bought and will soon become upgraded student housing.
In two separate deals, subsidiaries of Los Angeles-based real estate developer Champion Real Estate Co. have acquired the former Gamma Epsilon Omega house at 624 West 28th St. and the former Chi Phi fraternity house at 2715 Portland St. for a combined total of $16.7 million.
Champion did not disclose the sellers of the properties and how much each sold individually.
In a news release, Champion officials said they plan to renovate both properties for student housing.
Champion subsidiary Victory House Portland will upgrade the 14 bedrooms, six bathrooms, and 6,400-square-foot former Chi Phi house.
Meanwhile, Champion subsidiary The Victory on 28th will redevelop the 15,000-square-foot former Gamma Epsilon Omega house, which features 34 bedrooms and 19 bathrooms.
Though they would not comment on how much money they plan to reinvest in the capital improvements, Champion officials said the redevelopments include creating an oversized community lounge, a roof deck, private study cubicles and a security system.
Champion officials said each bedroom would be fully furnished with the latest home entertainment system, and utilities such as cable and internet would be included in the lease.
“With the rise in university enrollment, Champion is confident in the investment strength of student housing, especially for assets at prime locations like those near USC,” said Garrett Champion, executive vice president with Champion, in a news release. “We will continue to make strategic student housing acquisitions at Tier 1 universities on the West Coast and throughout the United States.”
Real estate firm Keller Williams’ Total Realty Group’s Michael Fukushima and Stephen F. Watson represented Champion and the sellers.
Both homes are located along USC’s Greek Row, which sits a few blocks from USC.
A Champion official said that the two homes were former fraternity houses with no affiliation at the time of the sale and were currently rented as general student housing.
According to USC, the former Gamma Epsilon Omega fraternity at 624 West 28th St. is no longer affiliated with the university.
Gamma Epsilon lost its recognition in 2017 for hazing and health and safety violations of the university conduct code.
Several fraternities, including Kappa Alpha Order, Theta Chi, and, most recently, Chi Phi, once occupied the home at 2715 Portland St.
The Victory on 28th and Victory House Portland investments are Champion’s 7th and 8th student housing acquisitions near the University of Southern California.
Champion has bet big on the growing student housing real estate market.
Earlier this year, Champion flipped a 24-unit student housing apartment at 2652-2656 Ellendale Place to an undisclosed buyer in a $21 million deal, ConnectCRE reported. Four years earlier, the company had initially purchased the property for $12.45 million and later renovated it.