Project Category: Property Management

212 East

Student Housing Case Study: 212 East

Location: Champaign, Illinois

University: The University of Illinois at Urbana–Champaign

In 2019, Campus Advantage was hired to manage a 428-bed asset that was significantly behind their market in pre-leasing velocity. Campus Advantage took over management in May when the property was 78% pre-leased. Historically, the property had reached budgeted occupancy. However, the Champaign market had five new developments deliver in 2019, requiring existing assets to have a more strategic marketing and leasing approach. Upon taking over management, Campus Advantage immediately implemented increased customer service standards and hosted various resident events to begin to build a sense of community. Campus Advantage’s Students First® Experience residence life program was implemented, and a resident appreciation week was hosted after the fall 2019 move-in. Campus Advantage also recruited and hired new staff for the property who believed in the vision of the asset and worked diligently to establish a positive reputation for the property. Campus Advantage achieved 94.4% occupancy in August 2019.

For the fall 2020 leasing season, Campus Advantage positioned the rates competitively using an aggressive tiered approach, and established a new, strong leasing team. There was also a heavy focus on resident engagement during the critical six-week window after move-in, and this focus continued throughout the academic year, which helped create a sense of culture and resident connection at the community. These combined efforts allowed the property to reach 100% pre-leased by February 2020, at a time when the Champaign market was 45% pre-leased. 212 East was the first community in Campus Advantage’s portfolio, as well as the Champaign market, to reach this 100% target.

Case Studies

Moontower

Student Housing Case Study: Moontower

Location: Austin, TX

University: University of Texas at Austin

Campus Advantage was hired in November 2018 to complete the initial lease-up of Moontower — a high-profile, new student housing development in Austin, Texas being developed by Lincoln Ventures, an Austin-based real estate investment and development firm. The 18-story, 567-bed property is located in West Campus, serving the University of Texas at Austin (UT). Catalyst, Campus Advantage’s marketing partner, was engaged to establish the brand for the asset in collaboration with Lincoln Ventures and assisted with creating digital marketing strategies to set the development apart within the competitive UT market. Numerous focus groups were held during the design phase of the development to tailor the design features to students’ preferences, and it was imperative that the brand reflected the attention to detail that was emphasized in the development plans.

Campus Advantage and Catalyst worked together in the planning and execution of a brand that would successfully launch the development into the local community. To do so, Moontower teamed up with local businesses for social media giveaways and on-site events. The development also incorporated influential UT alumni into the branding by naming floor plans after alumni and including quotes from Matthew McConaughey, a UT alumni celebrity, in the marketing materials. Moontower’s target demographic was identified early on, and the development worked to brand and market to these students. The property emphasized guerrilla marketing efforts coupled with unique, aggressive digital strategies, including SEO, SEM, and social media meme campaigns, to drive leads for the development during the initial key leasing months. Additional marketing and leasing efforts included establishing a marketing street team, sponsoring Greek Life events, and hosting social media contests. Moontower held a philanthropy contest in May 2019 to assist in launching the brand, which resulted in more than 16,000 likes on Instagram.

Moontower has established itself as the place to be with its top-tier living experience, including an excellent location, high-end finishes, a wellness-driven amenity set, and unparalleled customer service. These combined branding and marketing efforts led to the development reaching 100% pre-lease occupancy by April 2020 — 15% ahead of the development’s direct competitors, and 27% ahead of the off-campus market.

“The strong partnership and collaboration between Lincoln Ventures and the Campus Advantage team resulted in the extremely successful first lease-up of Moontower. Building onto the positive reputation of Lincoln Venture’s prior West Campus developments, the brand and marketing strategy created by the Campus Advantage team caught the attention of all UT students, resulting in immediate demand that quickly drove leasing velocity. Leasing started 15 months before the project was scheduled to deliver, a true testament to how quality development product and integrated marketing can resonate with students. This lease-up surpassed our expectations and we are excited to continue to work alongside the Campus Advantage team to serve our Moontower residents with an unparalleled experience in the West Campus market.” – David Kanne, Founder and Managing Principal of Lincoln Ventures

Campus Advantage will continue to provide property management services after opening, which will include oversight of property operations, marketing and leasing campaigns to drive subsequent leasing seasons, and the delivery of the Students First® Experience residence life program.

About Lincoln Ventures:

Lincoln Ventures is an Austin, Texas-based real estate investment firm focused on acquiring, developing, and managing high-quality real estate in superior locations throughout the United States. They are principally engaged in the ownership, acquisition, development, and management of both residential and commercial real estate assets. They employ an opportunistic investment strategy, seeking to acquire assets that are underutilized, leveraging their teams’ unique ability to assess opportunity, innovatively design, and effectively implement a carefully crafted strategic plan. With their unique hands-on management approach, they unlock potential and create value for their assets, partners, and the surrounding community, achieving superior risk-adjusted returns.

Case Studies

Liv+ Arlington

Student Housing Case Study: Liv+ Arlington

Location: Arlington, Texas

University: University of Texas at Arlington

In 2016, Stark Enterprises engaged Campus Advantage to perform a Market Analysis and Feasibility study for Liv+ Arlington — a new 789-bed student housing development near the University of Texas at Arlington (UTA). The market study included an analysis of on- and off-campus housing, rental rates, concessions, enrollment, and the University’s plans for future growth. Campus Advantage compiled recommendations for the development project, including a unit mix, amenities, apartment features, marketing tactics, and rental rates based on their findings. All recommendations were tailored to increase interest from the unique UTA student demographic plus factored in the University’s evolution from a primarily commuter campus.

Stark Enterprises continued to engage Campus Advantage for design and development consulting throughout the development’s planning and design process. Community spaces were carefully designed to contribute to residents’ academic success and wellness as well as peak interest from prospective students and parents during tours. The two-story clubhouse was designed to include a variety of study spaces and a spacious computer center to accommodate varying study styles and group sizes while remaining lively and inviting. The pool deck and courtyards were also carefully crafted to provide unique spaces for students to lounge, socialize, unwind, or study. To differentiate itself within the Arlington market, Campus Advantage recommended Liv+ feature a fresh market café to provide residents with 24/7 access to a variety of convenient, healthy and satisfying snacks.

Campus Advantage’s affiliate marketing partner, Catalyst, also worked closely with Stark Enterprises to develop the Liv+ brand and create marketing materials that would highlight the one- of-a-kind experience the development would offer. A strategic marketing plan was created to sell the Liv+ brand through online digital strategies as well as traditional grassroots marketing efforts. It was imperative to sell the upscale resident experience in addition to the development’s amenity offerings while the project was under construction as several new developments had recently delivered, and future developments were in the pipeline.

Liv+ Arlington opened in fall of 2018 and quickly developed a strong reputation at UTA for its robust amenity package, unmatched Students First® residence life programming, and customer service focused management team. The property’s J Turner Research Online Reputation Assessment score is 21 points higher than the market average; a true testament to resident satisfaction and the strong rapport built between management and residents. The management team also developed close relationships with key UTA on-campus departments, securing master lease contracts with both athletic and academic programs. The strategic marketing efforts, key relationship building, and dedication from the on-site team resulted in the property achieving 96% occupancy for fall 2019.

“Our cohesive partnership with Campus Advantage has been instrumental in the success of Liv+ Arlington. Together, we have built strong relationships with UTA, devised and deployed aggressive marketing strategies to achieve occupancy goals, and created a rewarding living experience for residents who choose to call Liv+ Arlington their home. Stark Enterprises was built on the philosophy of creating spaces that evoke visitors’ enjoyment, and we are proud of the Liv+ brand and experience we have built together with Campus Advantage to continue that philosophy. We look forward to delivering this unique product to other markets together in the future.” – Stacie Schmidt, Vice President of Marketing and Communications for Stark Enterprises.

About Stark Enterprises:

For over 40 years, Stark Enterprises has been developing and managing generational assets that leave visitors with lasting impressions. Stark’s nearly $2 billion portfolio consists of retail, entertainment, office, residential, hotel and student housing environments, totaling approximately 8 million square feet, located in over nine states. With over $1 billion under development, Stark properties are always managed with the company’s long-term investment strategy in mind and are continually recognized by customers and industry leaders as among the most beautiful, well operated and maintained properties in the nation.

Case Studies

The Monroe

Student Housing Case Study: The Monroe

Location: Bloomington, IN​

University: Indiana University

The Monroe is a 796-bed, purpose-built student housing property serving Indiana University.  Campus Advantage acquired the property in the spring of 2017 as a value-add acquisition.  The property had historically reached budgeted occupancy; however, Campus Advantage devised a strategic capital plan to achieve higher rent growth and enhance the resident experience through property renovations and elevated customer service. The plan included updating the unit interiors and amenity spaces, repositioning the property within the Bloomington market as a premier housing option, and implementing Campus Advantage’s Students First™ residence life programming. 

Campus Advantage completed the capital renovations which included a redesign of the clubhouse, business center, and fitness center, as well as unit interior upgrades including replacing dated furniture and flooring. Catalyst, Campus Advantage’s marketing partner, completed a rebrand of the property which included a new property name, logo, tagline, and a corresponding updated brand guide. Upon completion of these improvements, the property was able to increase occupancy by 9% from 2017 to 2018 and reached 100% occupancy in 2019. Most of the ROI was achieved through the occupancy increase; however, the property was also able to achieve 3% rent growth from 2018 to 2019. The Monroe is currently on track to achieve occupancy and rent growth goals for another consecutive year, and is leading the market pre-leasing by 8%.

Case Studies

Skyloft

Student Housing Case Study: Skyloft

Location: Austin, Texas

University: University of Texas

Campus Advantage was hired in February 2017 to complete the initial lease-up of a high-profile, new student housing development in Austin, Texas. The 18-story, 674-bed property is located in West Campus, serving the University of Texas. Catalyst, Campus Advantage’s marketing partner, was engaged to establish the branding for the asset and assist with creating strategic digital marketing strategies to set the development apart within the competitive University of Texas market. Skyloft was opening at the same time as two other new developments, so the brand needed to differentiate the project to attract UT students.

Campus Advantage and Catalyst worked together in the planning and execution of a brand reveal and launch party which led to a high number of attendees and market buzz. Additional marketing and leasing efforts included establishing a marketing street team, initiating an online VIP list to create excitement before kicking off leasing, and securing a competitive temporary leasing space. The property emphasized guerrilla marketing efforts coupled with unique, aggressive digital strategies including SEO, SEM, and social media meme campaigns to drive leads to the property during the initial key leasing months.

These combined branding and marketing efforts led to the development opening in fall 2018 at 100% occupancy. Campus Advantage has continued to provide property management services which includes oversight of property operations, marketing and leasing campaigns, creation of annual budgets and management plans, and delivery of the Students First® Experience residence life program.

Case Studies

Exterior of Skyloft

Pool

Living Room

Study Area

View of Austin

Launch

Student Housing Case Study: Launch

Location: West Lafayette, Indiana

Background

In 2016, Campus Advantage was engaged by an owner/operator of a conventional 731-bed multi-family property in close proximity to Purdue University. The property marketed mostly to young professionals and was struggling to reach occupancy over 75%. Campus Advantage took over management and Catalyst, Campus Advantage’s marketing partner, was engaged to rebrand the property to better appeal to students and graduates. Campus Advantage’s Students First® residence life programming was implemented, along with a strong marketing and leasing campaign. The property underwent capital improvements which were highlighted in the new marketing materials. With the new marketing approach to strategically target students, and by improving the overall resident experience, the property was able to reach 100% occupancy in both 2017 and 2018, renewed over 55% of residents in 2018, and achieved 8% rent growth following the property improvements.

Case Studies

Apartment Living Room

Northgate Lakes

Student Housing Case Study: Northgate Lakes

Location: Orlando, Florida

University: University of Central Florida

Background

Northgate Lakes is a 710-bed, purpose-built student housing property adjacent to the University of Central Florida campus. Campus Advantage acquired the property in July of 2013. The property had historically performed at the top of the market for occupancy due to its premier location, but rented at a discount to competitors due to the amenities and exterior being older and in need of enhancement. Campus Advantage devised a strategic capital plan which focused on addressing deferred maintenance and updating the units, as well as repurposing and refreshing the common area amenities. The upgrades were completed over the course of two academic years and were completed in the summer of 2018. Following these strategic upgrades, Northgate Lakes saw a 10.5% rent growth over a two-year period, maintained 100% occupancy year-over-year, and increased resident retention by 10%, reaching a 40% retention rate.

Case Studies

Clubhouse

Bedroom

The Verge

Student Housing Case Study: The Verge

Location: Orlando, Florida

University: University of Central Florida

Background

The Verge, built in 1999, was the eleventh acquisition for Campus Advantage’s programmatic joint venture with a large state pension plan. The Property is a purpose-built student housing community in Orlando, FL, located one mile from the University of Central Florida campus, consisting of 312 units and 930 beds. The Property offers one-, two-, three- and four-bedroom apartments and is served by the University shuttle service.  At the time of acquisition, The Verge offered amenities including a resort style swimming pool, grilling area, 24-hour fitness center, volleyball, tennis and basketball courts, and 24-hour access to the computer center and game room. This asset was historically very highly occupied, but at the expense of maximizing rental rates.

Objectives

Campus Advantage sought to renovate the property to drive revenue, provide better use of the space and amenities for the residents, improve the property clientele and reduce bad debt, and maintain the historically high occupancy the property had achieved. In addition, Campus Advantage identified unit upgrades that would provide long term utility savings for the property (common area) and the residents (units).

Implementation and Execution

Working with Kelle Contine Interior Design and Integrity Property Solutions, Campus Advantage made approximately $6M in capital upgrades.  Exterior upgrades included a total roof replacement, addition of vehicle and pedestrian gates, installation of LED lighting in breezeways, light poles and wall packs, and landscaping enhancements.

To meet the needs of today’s students, several amenities were repurposed. An existing outdoor basketball court was converted to a new enclosed, club-sized fitness center.  The movie theatre was converted into a new fitness-on-demand space with spin bikes, medicine balls and yoga equipment.  The pool area was enhanced by resurfacing the deck, eliminating a dated fireplace and replacing it with a custom-built fire pit, along with the addition of an outdoor kitchen.  In addition, the IT infrastructure was upgraded with new wireless radios throughout and increased bandwidth, providing much quicker speeds and wireless access to all residents.

Unit upgrades included installation of faux wood flooring in the common areas and bathrooms, replacement of bedroom carpet, all new appliances, addition of faux wood blinds to the common area, upgraded LED lighting throughout the unit, new framed-in mirrors and lights in the bathrooms, granite countertops with undermounted sinks in the kitchen, new bathroom counters, sinks and faucets, and new HVAC units and thermostats in every apartment.

Effective Rental Rate

In-place average effective rents were $591 for the 2015/2016 academic year when the property was acquired.

Although renovations were only just beginning, The Verge grew rents by 5.9% for the 2016/2017 academic year, compared to 1.8% for the previous academic year achieved by the seller.

Renovation premiums were fully realized with lease-ups for the 2017/2018 academic year, achieving an average rent of $702, a 20% increase from the pre-renovation rates.

Occupancy

The occupancy rate was 99% for the 2015/2016 academic year when the property was acquired.

Post-acquisition, The Verge reached 100% occupancy for both the 2016/2017 and 2017/2018 academic years. As of January 2018, The Verge is 20% ahead of the prior year’s pre-leasing velocity and tracking for an additional 4.6% rent growth.

Net Promoter Score

Property survey results indicated a 30% increase in resident satisfaction with their accommodations, and the Net Promoter Score for the property (likelihood to recommend the community) improved to 81% post-renovation.

Operational Cost Savings

The installation of exterior LED lighting resulted in a 20% reduction to common area electric expense. The replacement of the HVAC units and the installation of LED lighting to unit interiors reduced unit utility expense by 40%. From 2016 to 2017, the overall NOI grew by 32%.

Case Studies

The Verge – Pool Deck (Before)

The Verge – Pool Deck (After)

The Verge – Outdoor Grill (Before)

The Verge – Outdoor Grill (After)

The Verge – Clubhouse