Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/564824
TOWN & GOWN JULY/AUGUST 2015 STUDENT HOUSING BUSINESS .COM 54 Because of strong amenities and great locations, some stu- dent developers have accepted traditional renters. When Chance Partners built its District Lofts near the University of Alabama in Tuscaloosa in 2013, the com- pany received inquiries from tra- ditional renters who wanted to move to the project because of its downtown location. The com- pany ended up leasing a few of the units to traditional renters because they were willing to sign 12-month leases. "Because we were located downtown where all the ameni- ties were, we ended up with 15 to 20 percent of renters who were not students; we even had a few retirees and empty nesters," says Bobilin. "It was interesting to see that dynamic. In our second proj- ect in Tuscaloosa, we saw the same result with about 15 to 20 percent non-student. Even in our 500-bed property in Tuscaloosa, Riverfront Village, we've seen about 5 to 10 percent of the property leased to non-students. There's not a lot of new conventional product in that market. As more conventional product is developed there, I'd expect to see that drop." Chance Partners builds a lot of projects toward the high end of the market. Many of its smaller boutique projects have one-bed- room units that target grad stu- dents who are returning to school after living in traditional multi- family. Students realize there is a diference between conventional and student housing when tour- ing or looking at properties, says Bobilin. Many want the amenities — like having their own bath- room or top speed Internet — as well as the feeling that the prop- erty has been built to serve their needs as students. Larger markets with urban campuses are another area where conventional projects are often cross marketed to students. Bobilin points to Minneapolis, where about 50 percent of the 51,000 students enrolled at the University of Minnesota are liv- ing of campus, many in conven- tional apartments. "You see that in a lot of large cities," says Bobilin. "There are a signifcant number of schools out there that need purpose-built stu- dent housing." One new trend to watch is the comparison of traditional multi- family rents to student rents. In some markets, like downtown Chicago, says Dillon, rents for conventional multifamily are keeping pace with rents for stu- dent housing projects. This is especially so for one- and two- bedroom units where rents are mostly at parity there. (Three- and four-bedroom student units gen- erally equate to a rent higher than conventional multifamily in any market, according to our sources). 1.877.574.2587 www.valetwaste.com Since 1995, Valet Waste has been the Multifamily Housing Industry's leading provider of fve- nights-per-week doorstep trash and recycling collection. We currently service over 640,000 units and over 400 management companies and ownership groups nationwide. With Valet Waste Campus, student housing communities can improve resident retention and enhance their curb appeal. Residents no longer need to take long walks - day or night - out to the dumpster or community compactor or carry trash and recyclables up and down community stairwells and breezeways. Convenience. Safety. Waste Stream Control. The Brightest Idea in Student Housing Valet Waste Campus can help Manage Excessive Trash Normally Associated with Student Housing. 1 8 7 7 5 7 4 2 5 8 7 Spice Tree Apartments in Ann Arbor, Michigan, is a project that attracts both students and conventional multifamily renters because of its location. Management has adapted different leases for students and conventional renters. KEVIN DILLON Partner Berkadia