How we do it
Why this strategy?
- Fewer buyer competitors
- Our acquisition price targets are too expensive for most private operators and private syndication groups; too small for many large public and private investment groups.
- Many large and notable colleges and universities are located in smaller real estate markets
- These smaller real estate markets are not preferred by larger investors
- We are expert at spotting emerging trends in student housing; we are laser-focused on identifying those details and options/amenities that today’s students (and their parents) are seeking and willing to pay more to have.
- We have developed a deep network of real estate professionals who bring us off-market or limited marketed opportunities.
- Locations: close to school; identifiable near-term growth opportunities
- Student housing is a niche that presents unique and significant challenges to owners. “Mom and Pop” or poorly managed properties can easily succumb to these challenges. Our expertise allows us to readily turn these into very profitable properties
- Value-add possibilities. In addition to the obvious renovations, we have developed a highly appealingly unit “facelift” that directly adds value in the student’s eyes, and safety and security for the parents. Modern color palettes and fixtures. Property-wide and in-unit security through technology and LED lighting. Today’s students are tied to technology and being connected. We provide the experience they want – outlets with USB charging ports; Siri or Alexa-enabled smart devices for lights and HVAC; device-enabled entryway video security; streaming video services.
The benefits of this strategy:
- Lower purchase price of the properties
- More stable, consistent occupancy at optimal market rent
- Higher exit returns due to increased positive operations
The results of this strategy:
- Consistent and stable 8% annual preferred return to our investors
- Higher net profit on equity at exit