Student Housing Business

MAR-APR 2018

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

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THIRD-PARTY MANAGEMENT March/April 2018 StudentHousingBusiness.com 58 terly asset management reports to all investors as well as monthly financial statements for each prop- erty along with necessary commen- tary. All of this information and the reports are housed in an Ansarada data room, which each investor has access to. Ansarada provides AI-powered data storage for confi- dential financial transactions. The artificial intelligence aspect is built to mitigate risk and analyze busi- ness data. Additionally, investors can listen in to weekly asset and property management calls. Investors also have access to Student Quarters' management software, which also generates reports and financials. How Much Do You Want to Know? Every owner has a unique meth- od through which it stays engaged with its properties and its manage- ment team's performance. Owners also vary in how often and how deeply they want to be engaged. "We have a wide range of cli- ents," Meier says. "We have some who we talk to every day. If we do a flyer at a property, they want to approve it. We have others who only want to review their financials on a monthly basis. We typically see that clients are more hands-on in the beginning of our relation- ship. By year two, most owners allow us to take more control of the operations and performance." With Student Quarters, most investors prefer to access quarterly reports for high-level updates on each asset. The reports summa- rize the overall performance of the property and focus on distribu- tions to date, NOI, revenue growth, occupancy and other performance metrics. "This is especially true for assets that are performing ahead of or on par with the intended business plan," Feinour says. "If an asset is struggling for any reason, investors often want to speak directly to the sponsor and the property. Direct, open and frank communication is critically important here. Investors don't want to have to wade through detailed reports and financials to try to understand what is happen- ing. They want to hear directly from us about any issues and about what's being done. Investors appre- ciate proactive follow-up informing them of the status of these efforts until a property is back on track." A Fee-Managed Boost to Business Even for large owners, third- party management can still deliver immense value toward core busi- ness strategies. While EdR is pri- marily focused on managing the assets it owns and develops off- campus and expanding its public- private partnerships with univer- sities, the company also fee man- ages more than 7,000 beds at 12 campuses. According to Frank Witt, vice president of operations for EdR, those fee-managed clients have access to the same high level in- house services that Fulton says are expanding — including account- ing, operations, maintenance, IT support and marketing. EdR is the fourth largest owner, and the 14th largest third-party manager, in the industry, according to SHB's Top 25. "Relationship building is a very critical piece to each one of our assets," Witt says. "Even though our managed assets are a smaller percentage of our business, they help us develop relationships for further on-campus deals. It all comes down to how well you work with universities." SHB The Cottages of Fort Collins was co-developed and is managed by Capstone Collegiate Communities. EdR manages 929 Wolfe Street at Johns Hopkins University. The property was completed in 2012 and serves medical and nursing students at Johns Hopkins. FRANK WITT VP of Operations, EdR ANDY FEINOUR President, Student Quarters

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