Student Housing Business

JAN-FEB 2017

Student Housing Business is the voice of the student housing industry.

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INVESTMENT SALES UPDATE January/February 2017 StudentHousingBusiness.com 44 What's Moving While investment brokers say that there is a buyer for every asset, many were quick to point out that pedestrian-to-campus properties do not stay on the market long. New construction properties that are close to campus and have stabilized occupancy and net operating incomes top the list for many investors. "Pedestrian, close-to-campus properties in Tier I university markets are still the most sought after types of properties," says Jackman. "Typically, these are urban infill properties, and student housing owners are much more comfortable with the retail aspect of these properties. This is an on- going trend with more investors absorbing these assets along with their other types of properties — those further from campus, for instance." Since pedestrian-to-campus assets are in demand, other student hous- ing in university markets has become a new way of business for many investors seeking to create success by turning around properties while offering a value proposition to the population of students who may not be able to afford an apartment that is adjacent to campus. "Location is the greatest amenity a student housing asset can offer and drives pricing," says Larimer. "Cap rates are compressing as you get closer to campus with purpose-built, urban core assets getting very near 5 percent cap rates. For assets outside 1 mile from campus, cap rates have crept up as more developers eye the dirt between first generation student housing projects and campus." What is slow to move are properties at second tier and third tier uni- versities. Again, a buyer has to understand these markets and their par- ticular nuances to successfully execute any strategy with these types of properties. "The most challenging deals for us are properties at smaller schools A partnership between Greystar Real Estate Partners LLC and Rockpoint Group recently acquired University View, a 1,573-bed student housing community located near the University of Maryland campus in College Park., Maryland. Contact: Adam Barzilay Partner & Director of AcquisiƟ ons (310) 395-3430 ext. 218 abarzilay@mjwinvestments.com MJW Investments, Inc. 1650 5th Street, Suite 112 Santa Monica, CA 90401 www.mjwinvestments.com AGGRESSIVELY GROWING OUR STUDENT HOUSING PORTFOLIO AcquisiƟ on Criteria: -Purchase Price from $5M - $135M -Class A, B and C level assets -Within 2 miles from campus -Core to Value Add throughout the U.S. -Minimum enrollment of 15,000 students Recent AcquisiƟ ons: -Maynard Apartments at University of Michigan -Gateway at University of North Texas -Campus View CollecƟ on at Michigan State -Gateway at Texas Tech University of Oregon University of Michigan Texas Tech University UC Santa Barbara Washington State University Michigan State University University of Illinois University of North Texas

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