Our Investment Strategy
LAYING THE GROUNDWORK FOR SUCCESS
Why Student Housing
1. Specialized & High Barrier to Entry:
Student housing remains a specialized and high barrier-to-entry asset class within the real estate sector. This unique characteristic presents an opportunity to acquire exceptional assets at fair prices.
2. Consistent & Predictable Cash Flows:
Student Housing offers consistent and predictable cash flows thanks to its non-cyclical nature. All leases are based on the academic school year and reset yearly which allows for precise forecasting and consistent rent growth.
3. Record High Fundamentals:
Fundamental indicators for student housing are at record highs. Major Tier 1 university markets across the United States are currently experiencing unparalleled levels of occupancy, pre-leasing activity, and rental rates.
4. Resilience & Recession-Proof Nature:
The industry has historically outperformed during negative macroeconomic events, including the Global Financial Crisis and the COVID-19 pandemic, further solidifying its status as a resilient investment choice.
Investment Criteria
Asset Type
Purpose Built Student Housing Properties Near Public 4-Year Universities.
Location
Universities located in the Southeast and Midwest United States.
Market Criteria
Average market occupancies of over 90% with little to no new planned construction.
University Criteria
Public, Tier-1 universities with 20k+ enrollment and strong athletic programs (Power 5).
Price Per Bed
Substantially below replacement cost dependent on vintage and market.
Return Profile
12-18% Annualized.
Target Leverage
60-75% Loan to Value (LTV).
Target Hold Period
3-5 Years.
Acquisition Strategy
Core-Plus:
12-14%
Annualized Returns
60-65%
Leverage
Ability to increase cash flows through light capex and operational initiatives.
Value-Add:
15-18%
Annualized Returns
70-75%
Leverage
Potential to substantially increase cash flows with property-wide renovations and management initiatives.
Acquisition Process
Typical Deal Profile
$20-$60M
Price
300+
Beds
2000s+
Vintage
A & B
Class
Source
We have excellent deal flow which allows us to screen hundreds of on and off-market properties.
01
Review
Conduct an initial review of the properties in our target markets that fit our typical deal profile.
02
Underwrite
Underwrite 100+ properties per year which pass our initial review period.
03
Offer
Submit over 20 LOI’s per year on properties which fit our strict investment criteria.
04
Acquire
Look to acquire at least 1 property per quarter.
