Fall 2024
Issue #40
Letter from the CEO
As the cooler temperatures of the fall season finally start to reach us here in Austin, I’m thrilled to kick off this issue by reflecting on what has already been a strong start to the semester and leasing year. Across the country, our residents are back in the rhythms of their academic, personal, and professional journeys — and as their property management company, we’re proud to support them every step of the way.
This year’s move-ins were yet again a testament to what we can achieve together. The 2024 move-in theme, “Unpack the Possibilities,” embodied the moments we create and the relationships we foster within our communities. Thank you to our incredible on-site teams for your dedication, teamwork, and energy in making this year’s move-ins a success. I’d also like to acknowledge our corporate teams for their behind-the-scenes efforts in marketing, systems, accounting, customer service, and more. Your contributions are invaluable to making this successful and seamless move-in possible.
Speaking of possibilities, I’m excited to share that our annual Future Lives Here Scholarship is back for its third year! This $5,000 scholarship represents our commitment to creating vibrant student communities and supporting residents in their academic, professional, and social endeavors. It’s also a valuable resource for helping students reach their goals, and a chance for us to hear CA’s impact directly from those who experience it. I encourage everyone to spread the word and visit the application page to learn more about this exciting opportunity.
This fall also marks a period of exciting growth for our company. In November, we proudly announced the joint acquisition of Alight Columbia with our trusted partner, Tramview Capital Management. Located less than a mile from the University of South Carolina, this community adds 206 units and 700 beds to our portfolio. We’re thrilled to bring Campus Advantage’s leasing, operations, and marketing expertise back to this market — beginning with a bold new rebrand to The Radley, which you’ll read more about in this issue.
As we head toward the final stretch of 2024, I encourage all of us to maintain our momentum and finish the year strong. Your hard work and dedication are the foundation of our success, and I’m deeply grateful for each of you. Thank you for making a positive impact on the lives of our residents and on each other.
Wishing you a happy and safe holiday season! Let’s continue to strive for greatness together.
Mike Peter
President and CEO
ANNOUNCING THE THIRD ANNUAL FUTURE LIVES HERE SCHOLARSHIP
Campus Advantage and Catalyst Marketing are pleased to announce the return of the Future Lives Here Scholarship for its third year! This scholarship reflects our shared commitment to creating vibrant student communities and helping residents succeed academically, professionally, and socially.
In an effort to continue providing exceptional living experiences and helpful resources to help our residents achieve their goals, we’re offering the chance to win $5,000 toward the 2025–2026 school year! Applicants are encouraged to submit responses via written, audio, or video format to highlight their creativity and originality.
CAMPUS ADVANTAGE AND TRAMVIEW CAPITAL MANAGEMENT ANNOUNCE JOINT ACQUISITION OF COLUMBIA, SC, STUDENT HOUSING PROPERTY
Campus Advantage®, an industry leader in student housing property management, consulting, and investment management, and Tramview Capital Management (Tramview), a value-oriented real estate investment firm, announced the recent acquisition of Alight Columbia — a student housing property located near the University of South Carolina in Columbia, South Carolina.
As the second joint venture project between Campus Advantage and Tramview, the partnership announces the acquisition in conjunction with a full rebrand of Alight Columbia to The Radley. The asset is a 206-unit, 700-bed property with a mix of two-bedroom/two-bath and four-bedroom/two-bath apartment homes. The pet-friendly community features a strong amenity set with a fitness and weight training center, a pool area and an outdoor grilling station, tennis courts, a basketball court, a sand volleyball court, and a resident clubhouse with a business center.
The Radley is located less than one mile from the campus core, and residents are offered several options to commute, including a dedicated resident shuttle service.
ALIGHT COLUMBIA REBRANDS AS THE RADLEY
After the acquisition of Alight Columbia, Campus Advantage began working with our marketing partner, Catalyst, to complete a full rebranding of the 700-bed community in Columbia, South Carolina. The new brand needed to feel clean and modern, have a closer tie to the University of South Carolina’s traditions, and also stand out against competition in the market.
After an in-depth Namestorm™ process by Catalyst, the team selected The Radley, a short and memorable name that captured the essence of USC spirit. With “Radley” rooted in the color red, this name served as a nod to the university’s color palette of garnet, black, and white.
Catalyst created a unique logo that incorporated contemporary colors, playful text, and a Gamecock-inspired mark. To complement the abstract shapes of the new logo, the team also created a geometric pattern to achieve a refreshing and unique look.
To promote the rebrand, Catalyst equipped The Radley leasing team with a variety of collateral — including a brochure, a sales sheet, a paper system, a rack card, and branded social graphics. Paired with their updated tagline — “A Bright and Bold Way to Live” — The Radley is now positioned for ongoing success.
Employee Spotlight
JUSTIN FELIX IS LEAVING HIS MARK
After 10 years in the student housing industry, Justin has done it all, from leasing agent to property manager and everything in between. And if there’s one thing that experience has taught Justin, it’s that he knows exactly what he wants to be doing — leasing and marketing. As a traveling leasing specialist, Justin is always ready to jump in and help teams find their groove while also staying flexible to get the job done no matter what is thrown his way. Read on to learn more about Justin’s passion for traveling and leading teams to success.
TARIK BEKKA ALWAYS GIVES 100%
Tarik Bekka started out as a Community Assistant, worked his way up to Resident Director, and now brings his passion toward real estate and student housing to the corporate office. As Front Desk Coordinator, Tarik is often the first person vendors, residents, and employees speak to at Campus Advantage, and he wants to make sure they feel valued and heard immediately. Read more about how tarik is looking to bring his unique on-site perspective to Campus Advantage’s Austin headquarters.
We’re Hiring!
Do you know a passionate, motivated individual who wants to be part of a company that encourages, supports, and inspires employees to achieve their full potential? One that is committed to cultivating and developing a diverse and inclusive culture? A culture that also believes in taking our work and our communities, but not ourselves, seriously?
At Campus Advantage, our team is the core of our success. We hire based on experience and character, keeping an eye to diversity, equity, and inclusion for everyone. We seek out new team members who are passionate about making raving fans of our residents and clients — and having fun while doing so! If you know someone who fits this description and would like to be part of a team who loves what they do, check out our open positions and send them our way!
Investor’s Corner
Heading into the winter, a long-term student housing perspective is helpful. While pre-leasing and rent growth nationally are not keeping pace with the past two years of record performance, the student housing industry continues to experience strong overall performance, measured across all previous years.
Pre-leasing nationally is behind a year ago by 1.3% (College House), and we are seeing more volatility in leasing across markets, with some having experienced large increases in supply for 2024. These markets include larger universities such as Knoxville, Minneapolis, Ann Arbor, Atlanta, Orlando, and Austin. Because of the enrollment size and growth at these universities, their long-term prospects appear strong despite some near-term softness. At Campus Advantage, we are very pleased to have our portfolio pre-leasing ahead of last year by approximately 1.7%.
Asking rent is up 4.15% year over year. While not as strong as the very aggressive 10% exhibited this time last year compared to fall 2022, that 10% came down and ultimately settled around 5.8% for the fall 2024 leasing season according to Yardi Matrix. While owners were more conservative this year with asking rents at the beginning of the season, we believe most markets will see a smoother ascent throughout the leasing season compared to the late season decline in rates in 2023.
Interest rates seemed to follow political outcomes leading into the election, and there was much uncertainty at that time surrounding eventual economic policy, not to mention wars in the Middle East and Ukraine. The yield on the 10-year Treasury rose from around 3.65% in September to more than 4.4% leading into the election. Since then, rates have settled down a bit with the 10-year Treasury less than 4.2%, but we are still well over a month from Inauguration Day, and the impact of impending tariffs has yet to be seen. In addition to the level of Treasury rates, spreads on various loans are a key indicator of how much uncertainty investors see in our markets. Credit spreads in general are nearly at all-time tights, and spreads on student housing loans for acquisitions have been remarkably steady over the past six months or so, and have even come in slightly to a bit inside 190 bps over 5- or 10-year benchmarks.
Transaction volume has not been what was hoped for in the fourth quarter of 2024 as owners do not fear distress in the student space the way they might elsewhere. This has caused a frenzy for those assets in strong markets which do come to market. We have taken advantage of that and will be selling a handful of assets in two different portfolios during this winter. This is primarily a function of capital timing, however, and we are still aggressively seeking opportunities to buy student assets in markets with strong long-term fundamentals.
Scott Barton
Chief Investment Officer