Why Invest in Student Housing?
This industry is fueled by demographic trends and provides healthy, steady returns. Campus Advantage is a leader in student housing acquisition across the United States, partnered with leading pension funds. As an owner, developer, and third party manager, Campus Advantage has expertise in both the real estate and management of student housing assets. We have a proven track record of creating value by turning around and stabilizing struggling assets.
Full-time undergraduates are projected to grow 11.6% from 2011 through 2022, an increase of 1.19 million students (National Center for Education Statistics)
Diversification of Benefits and Resilient to recession
Using REIT NOI as a proxy, during the most recent recessionary period (2007-2010), student housing NOI increased by 11.9%, whereas apartment NOI decreased 3.4%
Fragmented and growing industry
The top 25 owners of student housing represent only 6.5% of total estimated off-campus demand according to Student Housing Business
Higher cash yields compared to conventional apartments
Historically, student housing has transacted at yields approximately 25-75 basis points above traditional apartments – currently, the five-year average is 50 basis points according to CBRE
Why Invest with Campus Advantage?
- Leading privately held national student housing company – 10th largest manager and 6th largest owner (SHB November 2016)
- Over $475 million equity raised through pension fund partners since 2007
- Over $1.5 billion in assets under management
- Over $100 million in capital expenditure projects delivered on time and on budget
- Excellent investment return performance exceeding both the NPI (National Property Index) and IPD Property Indices since inception
“Campus Advantage has overseen the operations for a portfolio of our properties … [that] were struggling with occupancy as well as operational issues. [They] were able to fully staff the property with professional staff, maintenance staff, and community assistants. Through these efforts, our portfolio reached 96% occupancy”
Ideal criteria for properties we are interested in acquiring:
100 units/300 beds
Greater than $15 million
Raw land with the area and zoning for the size parameters above
Markets featuring a university with more than 8,000 full-time undergraduate students enrolled
Properties located within three miles of a university campus — with a strong preference for those communities that are within walking or biking distance to campus