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 in the Southeast, Southwest, 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
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-$50M
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 1 property per quarter at a minimum.
