Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/564824
BUILD VS. BUY STUDENT HOUSING BUSINESS .COM JULY/AUGUST 2015 41 ue pursuing development and acquisition opportunities in the right locations in the right mar- kets that meet our investment criteria. We have no gun to our head, though, so while we have nearly 30 sites under develop- ment — which I defne as sites that we currently have under contract, own or are building on — we are perfectly content slow- ing down if we stop seeing so many opportunities that make sense. With our capital partners, we could also shift our attention to acquisitions if we thought that made sense for us. Orsak: Our goals may be seen as very modest in relation to some of our counterparts among the Top 10 Owners of Student Housing. We are focused on selective acquisitions and devel- opments where we have high confdence in returns, rather than exponential top line growth. Our acquisition goal is $150 million per year for the next two years. Our development goal is two deals per year. SHB: Do you think some markets are overbuilt? Jackman: Yes, but I've also been impressed with the ultimate absorption rates of new deliver- ies in many markets. The key drivers are university growth and university policies relative to an on-campus living requirement. And, of course, location relative to campus. Generally speaking, the basic fundamentals of the client base for student housing are very strong. Hence, the rapid growth and institutionalization of the sector, not to mention the very signifcant amount of capital earmarked for the sector from the global investment community. SHB: What words of advice do you have about building versus buying? Stark: I only caution the industry just as we were cautioned in the homebuilding sector: when you see more capital coming to the sector, which it is, overbuilding will be the frst thing that will tip the scales. It will cause some pressure points in some markets. We have already seen it in some markets, like Statesboro, Georgia, which will be a fve-year recov- ery. SHB 215.243.7000 | www.campusapts.com ACQUISITIONS. DESIGN AND DEVELOPMENT. CONSTRUCTION MANAGEMENT. PROPERTY MANAGEMENT. FINANCING. TECHNOLOGY. SMART. LIVING. Campus Apartments' capital resources, creative and flexible approach to development, and reputation for being a "best-in-class" operator, have positioned our frm as a partner of choice among both colleges and universities, local and regional developers, and investors seeking 3rd party services. Discover a student housing partner that thinks like you do. we build more than housing It's about building success. campus apartments ® smart. living. l b WES ROGERS President & CEO Landmark Properties