Issues:
* "Building" needs an article: It should be "the building" or "a building."
* "Reflected residents" is unclear: It's not clear what "reflected" means in this context. Did the student diversity *match* the resident diversity, or did it *represent* the resident diversity in some way?
* Subject-verb agreement: The subject is "diversity," which is singular, but the verb "reflected" is plural.
Possible Revisions:
Here are some ways to rewrite the sentence to make it clearer and grammatically correct:
* Matching diversity: "The diversity of the students within the building matched the diversity of the residents."
* Representing diversity: "The diversity of the students within the building represented the diversity of the residents."
* Reflecting the community: "The diversity of the students within the building reflected the diverse nature of the surrounding community."
Which revision is best depends on the specific meaning you want to convey.