Four Pillars of Effective Due Diligence
Posted on December 1, 2015 | by Campus Advantage
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Thorough Due Diligence Drives Intelligent Investment
With the influx of new capital, student housing investing has become more sophisticated and competitive. It is imperative that investors follow an exhaustive due diligence process to accurately confirm underwriting assumptions and evaluate potential investment success. Through dozens of due diligence analyses – conducted both for our own properties and for clients – Campus Advantage has identified a four-phased process that ensures effective due diligence for every asset. Download the white paper to learn more about this process, which includes:
- In-depth inspection of the property’s condition, including reviews of every unit and amenity, plus specialist reviews for engineering an IT infrastructure
- A financial analysis including a leasing audit comparing in-place leases against the rent roll, considering future leases and evaluating student demographics to confirm resident ability to renew
- A budget analysis based on an understanding of the intricacies of a purpose-built asset, especially the details that set it apart from a conventional multi-family property
- Market analysis, considering university enrollment trends, competitive assets, upcoming developments, and college residency requirements