Student Housing Business

MAR-APR 2018

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

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Page 116 of 128

COMPANY PROFILE March/April 2018 116 Tailor Made Corporate capital and a multi-sector pedigree are opening doors for Pinecrest to develop student properties that meet market-specific demands. By Lynn Peisner S Since its inception in 2013, Pinecrest has been pursuing independent and joint venture ground-up developments in university mar- kets with strong enrollment projections and favorable supply-demand ratios. The company is both developer and an investment firm. It provides up to 100 percent of equity for new projects that are carefully selected via a supply-demand analysis. It also brings to the table years of experience devel- oping multiple property types. Pinecrest is an affiliate of Perlmutter Investment Company, a multi-disciplined, privately owned real estate investment company based in Highland Park, Illinois, and established in 1998. The various strategy-specific companies have focused on land development as well as development or repositioning of region- al shopping centers, multifamily residential, office buildings and though its affiliate IAC Properties, warehouse distribution centers. With its sights set on student housing, Pinecrest has completed development deals both as 100 percent owner and as a joint ven- ture partner with experienced student housing developers, owners and managers. Currently, Pinecrest has three properties that are operat- ing and one that is under development. Pinecrest's first student property was The Vista in Boise, Idaho, near Boise State University. The Vista is a two-building com- munity with 539 beds that was built in a joint venture with the Carter Company and opened in August 2015. The Vista is managed by Cardinal Group Management. Pinecrest then joint ventured with The Bainbridge Companies on One Easton, a 440- bed community within walking distance to the University of Delaware in Newark that opened in 2016. The asset is managed by Campus Advantage. And The Knox at the University of Tennessee in Knoxville also opened in 2016 with 382 beds. The property was financed with equity from Pinecrest and is managed by Campus Advantage. Currently under construction is The Bridge on Forbes, a 489-bed community located in the Oakland neighborhood of Pittsburgh that will serve students attending the University of Pittsburgh and Carnegie Mellon University. The Bridge on Forbes will also be managed by Campus Advantage. The site is adjacent to a main retail corri- dor for students attending both universities and is also located close to the University of Pittsburgh Medical Center and Magee Womens Hospital in downtown Pittsburgh. Student Market Turned Heads Pinecrest was attracted to student housing because of the increasing amount of institu- tional capital coming into the sector. Drilling down further, President and CEO Stephen Perlmutter says the company noticed that most of that capital was flowing into acquisi- tions of completed portfolios, with much less institutional capital aimed at the development side. With that, the company began evaluating university markets where it could develop Pinecrest is developing The Bridge on Forbes, a 489-bed community near the University of Pittsburgh and Carnegie Mellon University. Campus Advantage will manage the asset. " Since we've been in the business, there's been a transition from the 'build-it-and-they-will- come' mentality to a more realistic approach, which is that stabilization probably will not occur until the second year. — Stephen Perlmutter, President and CEO, Pinecrest

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