Student Housing Business is the voice of the student housing industry.
Issue link: https://studenthousingbusiness.epubxp.com/i/564824
COMPANY PROFILE JULY/AUGUST 2015 STUDENT HOUSING BUSINESS .COM 70 STUDENT HOUSING FOR SMALLER MARKETS Annex Student Living has transformed an opportunity into a burgeoning business. By Randall Shearin A Annex Student Living started with a small stu- dent housing project built at the request of Carl Sandburg Community College in Galesburg, Illinois. CEO Kyle Bach had been pursuing an affordable housing project in Galesburg for the company's previous incarnation when the presi- dent of the college saw his name in the local news- paper. While the affordable housing project did not materialize, the president of Carl Sandburg urged Bach to consider building student housing in the community. Annex partnered with Bluffstone to build a 144-bed student housing project near the university in 2011, The Villas at Carl Sandburg, which has remained 98 percent occupied since it opened. "We held a lot of focus groups to under- stand the student market there," says Bach. "We knew the demand was there, but that it was small since Carl Sandburg was a regional community college. We needed to know what they wanted, in terms of amenities, and what they were willing to pay for. We have found at community and regional colleges that stu- dents are very focused on the price point." Indianapolis-based Annex Student Living has gone on to replicate the smaller student housing model that it created at Carl Sandburg for other small community and regional col- leges, as well as larger universities. The com- pany has projects either built or underway near universities from 1,100 students to 30,000 students. "To make a model that has between 100 and 200 beds work, it takes some creativity," says Bach. "When we discuss our models with our peers, they don't see how we do it with that small number of beds." The frst key to success, says Bach, is a strong relationship with the university that the proj- ect will serve. While the universities have no fnancial stake in the success of the projects Annex builds — most do not ofer any student housing — Bach says the university must understand the model and create a working relationship with Annex. Those handshake agreements help Annex while helping the schools attract students by ofering housing. The cities where the universities are located are another strong partner. Seeing the value that housing creates to attract students — and to make a small stu- dent housing proj- ect work — Annex seeks tax incentives from cities where it builds. The amenities at Annex's projects are diferent than what you will fnd at many of-campus student housing projects at larger universities because of the nature of the students at commu- nity and regional colleges. Many are traveling a good distance from home to attend a community college. Most of the schools ofer accelerated degree programs so that students are not spending four years to obtain a degree. Many are also there to learn skills-based jobs, like nursing, healthcare or technical professions, and are thus in school to study intensely. "Rather than a lazy river, we tend to think Google ofce space when we program our amenities," says Bach. "We preach collabora- tive learning in our communities. We think that is important for the livelihood of the students because of the nature of their studies. Many are trying to get into the workforce a lot sooner than at traditional four-year colleges." Following Galesburg, Annex built projects at Indiana University Kokomo (139 beds); Indiana University South Bend (133 beds) and Vincennes University (128 beds). All three projects opened in the fall of 2014. The projects in Vincennes and South Bend were acquisi- tions that were renovated to student housing. For fall 2015, the company has a num- ber of projects opening. Annex acquired an asset near The Ohio State University at Lima that it will perform minor renovation work on this summer. It completed a new build, 112-bed project at Indiana University-Purdue University Columbus in May. The company is also delivering a 268-bed project at Murray State University in Kentucky this fall, as well as a 216-bed project at Indiana University East in Richmond and a 192-bed complex at Annex Student Living completed a new, 112-bed project at Indiana University-Purdue University Columbus, Indiana, in May. KYLE BACH CEO Annex Student Living