HC2 Capital announced today that it has raised $13 million in equity as part of a joint venture with Landmark Properties to develop a 625-bed, cottage-style student housing community on approximately 40 acres near Appalachian State University in Boone, North Carolina.
The investment reflects HC2 Capital’s continued focus on U.S. housing markets supported by durable demand, high barriers to entry, and experienced sponsorship. Landmark Properties is the largest student housing developer in the United States and manages over $15 billion in student housing assets nationwide.
“We look for investments where fundamentals—not optimism—do the heavy lifting,” said Gabriel Hidalgo, Partner of HC2 Capital. “Boone is a rare market: enrollment continues to grow, developable land is scarce, and new supply is extremely difficult to deliver. That combination creates long-term stability we value as equity investors.”
Appalachian State University, founded in 1899, is the sixth-largest public university within the University of North Carolina system. Enrollment has increased for 12 consecutive years, reaching a record 21,570 students in 2024, with expectations for continued growth. Despite this, purpose-built student housing has failed to keep pace.
Boone is a classic college town where limited transportation infrastructure compels students to live near campus. At the same time, mountainous terrain and strict government regulations have severely constrained new development, resulting in a persistent housing shortage and near-100% occupancy across the market. Notably, this project is the only approved off-campus student housing development in the area since 2022.
The project’s capitalization is expected to include an EB-5 mezzanine loan, which lowers the overall cost of capital and, in turn, enhances targeted returns for HC2’s equity investors. This structure reflects HC2 Capital’s broader platform, which spans both traditional real estate private equity and EB-5 investments, allowing the firm to thoughtfully align capital sources with project needs.
“This investment represents what we strive for across our platform,” added Gabriel. “Strong sponsorship, disciplined structures, and assets that serve real needs—housing students in markets where supply simply hasn’t kept up.”
About HC2 Capital
HC2 Capital is a real estate private equity firm providing access to institutional-quality real estate investments for domestic and international investors. The firm provides traditional real estate investment opportunities for investors seeking to grow and diversify their portfolios, as well as exclusive EB-5 investment opportunities for international investors pursuing permanent U.S. residency through the EB-5 Immigrant Investor Program.
Headquartered in Dallas, Texas, HC2 Capital partners with experienced sponsors to deliver institutional-quality investments through disciplined underwriting, transparent structures, and a focus on capital preservation and long-term value creation.
