Summer 2024
Issue #39
Letter from the CEO
As we find ourselves in the midst of summer, I’m excited to share our midyear update with you. This time of year is always a highlight for us, and this year is no exception.
With turn season and move-in day upon us, our communities across the country are buzzing with activity and anticipation. These annual milestones not only mark the start of a new chapter for our residents and their families, but also reflect the dedication and excellence of our on-site teams who work tirelessly to make the transition as seamless as possible. These individuals have gone above and beyond to ensure that every apartment is cleaned, prepped, inspected, and ready for occupancy — reinforcing our commitment to high standards and exceptional service. Their hard work and efficiency during these past few weeks have set the stage for a positive and successful start for our new residents. Their efforts truly embody our company’s values, and I want to extend my heartfelt thanks to each member of our team for their unwavering dedication.
August is also National Wellness Month, a timely reminder of our commitment to wellness both for our residents and our team members. At our communities, we strive to offer exceptional wellness amenities — fitness centers, swimming pools, yoga and spin rooms, and more — to support our residents’ physical health. Equally important, we are dedicated to promoting both physical and mental wellness for our employees. From comprehensive health, vision, and dental packages to team member initiatives and ongoing support, we believe these benefits and resources are not just perks — they’re part of the job and essential to a thriving workplace.
Looking ahead to the fall, I am filled with optimism and enthusiasm. Our company is on an exciting growth trajectory, with a strong pipeline of new acquisition and management opportunities. Our consulting and business development teams are actively exploring new and established markets across the country, eager to expand our reach and continue providing top-tier property management services. This growth is a testament to the confidence you, our valued investors and clients, have placed in us, and we are committed to upholding our strong track record of success.
Let’s keep this momentum going as we gear up for the changing seasons and the exciting opportunities that lie ahead. Whether you are preparing for the new school year, gearing up for football game days, or simply looking forward to cooler weather, a sense of readiness is right around the corner.
Mike Peter
President and CEO
Rethinking Student Housing Operations: Fostering Communities Beyond Walls
In the dynamic landscape of higher education, the significance of student housing operations extends far beyond basic accommodations. Our student communities serve as a place for holistic development, nurturing not just academic pursuits but also fostering social interactions, emotional well-being, and cultural exchange. As universities across the world strive to enhance the overall student experience, reimagining student housing operations — and then making those ideas a reality — becomes a pivotal avenue for innovation and excellence.
In this article, we explore some key facets that are currently defining the future of student housing operations.
THE VECINO GROUP SELECTS CAMPUS ADVANTAGE AS PROPERTY MANAGER FOR 6 ASSETS IN BOWLING GREEN, KY; OMAHA, NE; AND SPRINGFIELD, MO
Campus Advantage was selected to manage six assets for The Vecino Group, a Missouri-based real estate developer. The portfolio of purpose-built, off-campus assets includes Muse Omaha (371 beds) in Omaha, Nebraska, serving Creighton University; Muse Bowling Green (381 beds) in Bowling Green, Kentucky, serving Western Kentucky University; and Park East, which comprises four communities — SkyEleven (153 beds), The U (88 beds), Cresco (106 beds), and The Sterling (32 beds) — all in Springfield, Missouri, serving Missouri State University.
“Our team is thrilled to be expanding our portfolio into the Omaha, Bowling Green, and Springfield markets,” said Pam West, Senior Vice President of Operations at Campus Advantage. “We look forward to demonstrating our proven student housing management expertise at these communities and enhancing the overall living experience for current and future residents.”
CAMPUS ADVANTAGE ADDS VALDOSTA, GA, PROPERTY TO ITS MANAGEMENT PORTFOLIO
Campus Advantage was selected to take over management of Remerton Mill — a student housing property located near Valdosta State University in Valdosta, Georgia, and owned by TMC Property Holdings, LLC.
Built in 2019, Remerton Mill is located one mile from the Valdosta State University campus and features three three-story apartment buildings. Each unit is fully furnished and equipped with modern appliances, a washer and dryer, individual bathrooms, full-size beds, and ceiling fans. Property amenities at Remerton Mill include a swimming pool and sundeck, a gated entrance, and ample parking.
“We are thrilled to welcome our new client and asset to our portfolio,” said Melissa Hinton, Regional Vice President of Operations. “We’re looking forward to bringing our student housing operational excellence and time-tested approach to the Valdosta market. These residents can look forward to a rewarding living and learning experience in an enjoyable environment.”
2023-2024 FUTURE LIVES HERE SCHOLARSHIP RECAP
After a successful launch last year, this year’s Future Lives Here Scholarship broke its previous record with over 400 written, video, and audio entries from participants around the country! We loved hearing from prospects and residents about their future goals, the idea of home, and how their CA community has impacted them personally, professionally, or socially. Read on to check out a few of the entries — and stay tuned for applications to reopen this fall!
“When I first moved into my apartment at The Spoke I knew that this would be a home. I liked how this was similar to the dorms but with more freedom. I really do think the people here make things feel like home, from the leasing office staff to the residents. I feel very supported here, and it feels like where I was meant to be.”
ETHAN C., THE SPOKE
“There are so many community events, everyone who works here is so kind and helpful, and all of the neighbors I’ve met are so wonderful. NGL is also a place where I feel I can relax when I leave campus. Between the pool, pool table, volleyball court, and fitness areas, I am always able to relax or decompress in the way that I need when I get home. My apartment is also so homey and welcoming, I truly feel at home as soon as I step through the door.”
JACQUILYN R., NORTHGATE LAKES
“The presence of quiet study rooms within NOLAN has offered me a dedicated space where I can focus on my coursework and take project meetings without distractions. Whether it’s preparing for exams or working on assignments, these study rooms have been invaluable in helping me maintain productivity and concentration. Overall, my experience living in a CA apartment has been instrumental in helping me succeed academically.
SHERMAN W., NOLAN
“Living in a student housing community changed that previous idea for me and made me realize my roommates could become my family, and that I could make my student housing my home by decorating it with my trinkets from my life or my favorite movie posters. And now coming ‘home’ is my favorite part of the day because I get to see my roommates and eat dinner with them, and then watch a movie in my room with the beautiful city lights in the background. Home is somewhere you should feel your mind is at ease, and I certainly feel that way about my Stateside apartment.”
OLIVIA M., STATESIDE
“Since coming to the University of Montana and living in the ROAM student housing community, my understanding of home has evolved. ROAM has become an expansion of my concept of home. It’s not just a place to sleep; it’s a community where I’ve found friendship and support. The people I’ve met in ROAM have become like a second family, and the shared experiences we’ve had together have added a new layer of meaning to the concept of home. It’s not just about physical space; it’s about the connections and relationships that make a place truly feel like home.”
JACK T., ROAM
A FRONT-ROW LOOK AT OUR LEASING CAMPAIGN
Catalyst, our marketing partner, collaborated with the Leasing and Marketing department at Campus Advantage to create our portfolio-wide Summer leasing campaign, encouraging both prospects and current residents to sign or renew their lease for the upcoming year. The campaign’s theme, “Score a Front Row Seat to Summer,” was geared around the countless events and activities available to student residents over the break.
Participating communities were provided with various deliverables to promote the campaign, including a full-page flyer, a landing page, Instagram story videos, SMM and SEM paid ads, and emails. The campaign ran from May 20-June 24. After that, a winner was randomly selected to receive $1,500 to Ticketmaster or SeatGeek, $250 in Uber or Lyft credits, and $250 to Airbnb. Congratulations to Sotarios D. from The Beacon, who took home the grand prize!
Reporting highlights from the summer campaign include:
- 1,032 new leases and 301 renewals signed
- A total of 27,001 sessions to the landing pages, with 22,586 of those sessions conducted by new users
- 63,344 emails sent with an open rate of 60.23%, exceeding the industry benchmark of 18.2%
- 1,463,763 impressions and 29,254 clicks received from search engine marketing (SEM)
Notable Coverage
The March/April and May/June issues of Student Housing Business magazine featured appearances from the Campus Advantage and Centricity teams, including:
Employee Spotlight
Lisa-Marie Barry is Opening Doors for her Residents and Team
What originally began as a shuttle driving position in 2017 eventually led Lisa-Marie to a leadership role as General Manager at Arcadia on the River in Milledgeville, Georgia. During that time, she’s continued to share the same commitment to growth and support with her own residents and team — including a passion for learning and an open-door policy. Inspired by her own mentors, “Miss Lisa” is well-known for taking care of others, her community, as well as plenty of plants and animals along the way. Read on to learn more about her professional background, the value that represents her best, and a hilarious CAmmy Award surprise.
Chris Alty Doesn’t Sweat the Small Stuff
Since joining the Campus Advantage team in 2021, Senior Analyst Chris Alty has worked closely with his team and various Campus Advantage departments to maximize revenue, develop budget plans, optimize investment performance, and make sure everything runs smoothly. His natural competitive drive is a huge motivator when it comes to finding opportunities for growth and improvement — but don’t let that fool you. Just like in the song “Hakuna Matata,” Chris is also known for his flexibility, easygoing work style, and ability to keep things light. Read on to learn more about his recent promotion, his favorite CA core value, and where you can find him outside of work.
Renee Fisher is Making Her Own Path
Renee Fisher didn’t plan to work in property management; in fact, she originally had her sights set on pre-med until she found herself on a new and unexpected career track. After getting started in conventional housing and corporate real estate, Renee took a position as General Manager of ROAM Student Living in Missoula, Montana — and in her words, “the rest is history.” Whether leveraging her multitasking skills to take care of day-to-day responsibilities or working alongside her team to provide the best experience possible, Renee is ready to tackle whatever adventure comes her way. Read on to learn more about her professional background, a moment that she’s most proud of, as well as her current guilty pleasure video game.
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!
Investors Corner
Just a quarter later and much has changed. Measured by pre-leasing velocity, this year’s leasing strength has waned a bit, declining from a record start in October and November 2023, to a strong second-best year on record from December 2023 through April 2024, and finally slipping to third place — behind the velocity of 2022 — in May and June 2024. That doesn’t tell the whole story, however, and when the combined effects of occupancy and rent growth are considered, this leasing season will almost undoubtedly finish as the second strongest in the history of the student housing industry.
Pre-leasing velocity at this point is 2.9% behind last year, but that gap is likely to close as the leasing season wraps up and ultimately finishes on the West Coast in late September.
Asking rents are 7.1% higher than a year ago, and while that is down from earlier in the leasing year, it still represents strong rent growth performance toward the end of the leasing season. It is easily the second strongest year-over-year (YOY) rent growth measure taken at the end of July of any year except 2023. These pre-leasing and asking rent figures are from College House.
Most things in life are cyclical, and student housing rent growth seems to be no exception. After years where pedestrian-to-campus locations had the best performance, this year was different. As of June 2024, locations less than 0.5 miles to campus had 4.2% YOY rent growth, while locations 0.5–1.5 miles away had 5.6% and locations more than 1.5 miles from campus had 4.6%.
The capital markets didn’t appear to have a very interesting second quarter, given that rates on the 10-year Treasury ended the first quarter at 4.36% and the second quarter at 4.34%. However, things started moving dramatically just a few days into July, and the 10-year Treasury yield plummeted to 3.8% by the beginning of August. Yields have corrected, but the markets are predicting a very high likelihood of meaningful cuts in the federal funds rate by the end of the year. Some economists are even calling for an emergency cut in between meetings, but this is very rare. The last time the Federal Reserve adjusted rates between meetings was in March 2020, in the midst of the economic downturn related to the pandemic.
Spreads on fixed-rate debt continue to hover a bit inside 200 bps for debt issued by government agencies or the more aggressive insurance companies. Sponsorship is still a very strong determinant for any non-agency debt as lenders focus on serving existing customers and not necessarily growing their book of business.
Optimism is starting to heat up for a significant increase in transaction volume late this year. Broker pipelines for broker opinions of value (BOVs) are the largest in recent years as many owners are tempted to sell into this recent decline in Treasury rates. The decline in rates should be enticing to buyers as well, as they can attempt to purchase properties while reducing the amount of negative leverage required to do so. Time will tell how pricing adjusts and who benefits more from these lower rates, but in general it seems it will be helpful to both.
Scott Barton
Chief Investment Officer