42North

Location: Tampa, Florida

University: University of South Florida

The Challenge

Campus Advantage acquired 42North in 2014 after third-party managing the 420-bed student housing community for one year. In an effort to increase its value in the University of South Florida market, a short-term business plan was needed to inject capital into the older asset.

The Solution

Campus Advantage identified and executed a value-add investment strategy that included infusing capital to cure deferred maintenance, as well as repainting the exterior and re-roofing all buildings. To ensure student residents had quality technological access, the IT infrastructure was improved by installing new fiber lines and wireless internet infrastructure, and rebuilding the cable infrastructure.

In addition, apartment interiors were upgraded with new bedroom furniture and appliances, and the amenities package was upgraded by adding new fitness center equipment, a hammock garden, a dog park, and a clubhouse revamp.

To increase lead traffic to the office and website, Campus Advantage worked with their marketing partner, Catalyst, to establish an integrated marketing approach that included elements such as a themed move-in and resident appreciation campaign to deepen residents’ connection to the community, early and consistent renewal campaigns targeting residents, and integrated (online/offline) media campaigns to attract new leases.

The Results

With these value-add strategies in place, in addition to maintaining and operating the community to meet the company’s high standards, Campus Advantage increased 42North’s net operating income (NOI) by 25.8% in 36 months. In alignment with the initial plan, Campus Advantage closed the sale of the community in May 2017. Their involvement in renovations resulted in a significant increase in property value, an equity multiple of 1.68, and a levered internal rate of return (IRR) of 20.6%.

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