Renewal 2016

Student Housing Case Study: Renewal 2016

Campus Advantage kicked off the 2016 renewal season with a refreshed portfolio-wide move-in themed campaign. The theme — Move-In Fest — was well received by residents and acted as a strong reminder of the brand that a resident was committing to upon renewing their lease. The campaign targeted college students between 18 and 24 years old at 24 properties nationwide and encouraged them to renew their lease as early as possible to take advantage of the best rates available. Some promotions seen throughout the campaign included “Early-Bird Specials” and “Live It Up,” both of which tied back to the Move-In Fest music festival vibe.

The campaign was made up of physical and digital deliverables including banners and bandit signs at each property, emails, property-specific landing pages, social media graphics, thank you cards, letterhead, door hangers, and more. Overall, the campaign resulted in 398 leads, and emails performed with an average click-through rate of 10.40%, well above the 2.5% industry average.

Cyber Monday 2015 Campaign

Student Housing Case Study: Cyber Monday 2015 Campaign

Catalyst was asked to create a Cyber Monday campaign and collateral for Campus Advantage, a student housing owner and operator based in Austin, Texas. The campaign was used to market student housing properties to students (18- to 24-year-olds) in over 30 markets around the United States. The campaign needed to be inclusive of all properties within the portfolio while being universal enough to be cost effective for each property to buy-­in without having to change each piece of collateral.

Catalyst completed a Cyber Monday campaign for Campus Advantage in 2014 that was very successful, and the client wanted this year’s campaign to surpass that of last year. The expectation was to be 100 leases ahead of where the portfolio was the previous year, a goal that was surpassed during the campaign.

Catalyst filmed a video around a “sit back and relax” theme. With holidays and finals right around the corner, students’ lives were already hectic enough without a big sale going on at their apartment complex. To accomplish this, we removed the hectic schedule and instead promoted a day of taking it easy and saving big when you live at a Campus Advantage community. In order to incorporate all of the individual communities participating, throughout the video, different swag items or imagery from each property were used in subtle ways and allowed properties to promote the video with a “have you found our logo” type of game.

In addition to the video, Catalyst created social media graphics, emails and associated landing pages, posters, and flyers to allow each property to tease Cyber Monday specials leading up to November 30 (Cyber Monday). Over 172,000 emails were sent to 37,305 unique recipients with an average open rate 53.33% and a click-through rate of 17.1%. A total of 780 leases were signed over the course of the campaign, leading to an average cost per lease of $44.87 for the portfolio. This left the portfolio 40% ahead in renewed leases from the previous year, and 76% ahead in new leases and significantly surpassed the goal of being 100 leases ahead.

University of Iowa

Student Housing Case Study: University of Iowa

Hawks Ridge

Iowa City, IA

Campus Advantage was retained by the Investor in August 2011 to perform the due diligence process for their acquisition of Hawks Ridge (formerly known as The Lodge) in Iowa City, IA. Campus Advantage’s approach to the due diligence included the following components:

Lease Audit – Campus Advantage meticulously examined each lease file for current residents of the property. The data documented on the lease files was compared to that reported in the rent roll to ensure a proper calculation of the property’s revenue. During the process, student demographics were also noted to better assess the student base at the property, as well as to aid in the development of future marketing campaigns. The team also recorded concessions to confirm assumptions made in the underwriting of the property.

Property Inspection – The entire property underwent a physical inspection, including all units and common area space. All damages were noted and compiled into our report to produce capital expenditure projections through the first 10 years of operations.

Market Analysis – Our team thoroughly analyzed the Iowa City market to assess the property’s position in the market and confirm revenue assumptions made in the underwriting.

After all the data was compiled and analyzed, Campus Advantage recommended that the Investor move forward with the acquisition, as it is the only fully amenitized property offering bundled utilities, by-the-bed leasing, and social programming to its residents in this market. It was also determined that the property would benefit from Campus Advantage’s specialized management skills and residence life programming. The Investor closed on the deal in late October 2011.

Alexandria Technical

Student Housing Case Study: Alexandria Technical

New Development Design Consulting

Alexandria, MN

Campus Advantage was approached in September 2010 to complete an operational budget analysis for the first on-campus housing at Alexandria Technical and Community College in Alexandria, Minnesota. Campus Advantage reviewed the unit mix, building type, and other related items provided by the client to provide an operating budget to maximize NOI.

In the following months after completion of the operational budget analysis, Campus Advantage was then again approached by the developer in early summer 2011 to lend its expertise in development and design of the project. Campus Advantage worked closely with the client to review and optimize unit layouts and building plans as well as make recommendations on vendor selection, information technology issues, FF&E specifications, and also operational topics such as lease terms, utility structure, and administrative office setup.

Due to its involvement with the project, Campus Advantage developed a relationship with the college’s foundation and continues its ongoing consulting during the project’s initial operations phase offering the following services, but not limited to marketing materials and website production oversight, marketing plan development, policies and procedures consultation, and general operating guidance for a new student housing community.

Foundation Hall opened in fall 2012. It pre-leased to over 96% and was received with great popularity amongst students who were previously underserved in their housing needs.

Pepperdine University

Student Housing Case Study: Pepperdine University

Strategic Repositioning

Malibu, CA

Campus Advantage was contacted in late July 2011 by an interested investor of a multifamily product to provide their expertise on converting a conventional apartment complex in Malibu, CA to student housing. Campus Advantage visited the property, as well as the market, to make observations on whether the project could operate as a student housing community during the academic year. A budget analysis of the existing project was also completed by evaluating current financials to provide projected financials for a student operation.

After careful analysis of the market and review of the financials, Campus Advantage determined that the property had excellent potential to convert to a pure student housing community due to limited supply of rental choices and limited on-campus housing. Campus Advantage also provided recommendations for the conversion to student housing that included implementation of a residence life program, furnishing units with bedroom and living room furniture, and modifications to lease terms and rental rate structures.

DePaul University

Student Housing Case Study: DePaul University

Operational Assessment

Chicago, IL

Campus Advantage was engaged by the trustee of a purpose-built student-housing community in the DePaul marketplace in March 2011. Campus Advantage team members interviewed site staff, toured the property, conducted student intercept surveys, reviewed historical documents, and surveyed the market. Operational data and budgets provided by the owner were also reviewed to create a comparative budget using industry benchmarks to illustrate the variances associated with the property versus an average property of this size.

CA’s assessment of operational strengths and opportunities for growth included the following categories:

Market Factors

  • Overview of competitive properties in the market
  • Rate comparison to market averages
  • Enrollment trends for DePaul

Marketing and Leasing

  • Social media use
  • Website review to increase usability
  • Property signage
  • Printed marketing assets including mail pieces
  • Opportunities to increase leasing traffic
  • Training to increase closing rates 

Facilities

  • Review of service contracts
  • FF&E assessment

Residence Life

  • Staffing / job duties assessment
  • Event schedule review
  • Campus relations advising

Budget Review

  • Utility cost comparison to local market rates

Campus Advantage was subsequently engaged to provide ongoing operations consulting to assist with the implementation of our recommendations. In the month’s following our consulting, occupancy at the property rose 22 percentage points for the beginning of the 2011-2012 academic year.

University of New Hampshire

Student Housing Case Study: University of New Hampshire

Operational Assessment

Varsity Place Apartments – Focused on NOI Enhancements

Campus Advantage was contracted by a portfolio owner to conduct an operational assessment for several properties serving students at the University of New Hampshire. This operational assessment focused on identifying issues or challenges related to market factors, staffing and leasing, and operations and facilities. Campus Advantage made specifically targeted recommendations for changes or improvements that could result in achieving the higher occupancy and NOI for the property.

Market Factors considered for this property included:

  • Successfully leasing a very large variety of unit types
  • A large number of recent and upcoming developments
  • Marketing and residence life improvement adjustments
  • Recommendations focused on increasing returning resident ratios

Staffing and Leasing

  • Recommendations to develop a full residence life program
  • Incorporating resident events as a part of the marketing plan
  • Employing a social media plan

Operations and Facilities

  • Property tax recommendations
  • Overview of benefits and efficiencies of offering inclusive rates

Campus Advantage team members interviewed site staff, toured the communities, and surveyed the market. Operational data, sales reports, current rent rolls, and budgets provided by the owner were also reviewed. Additionally, interviews were conducted with the Durham City Planner to gain insight into future developments planned for this market.

University of California – Berkeley

Student Housing Case Study: University of California – Berkeley

New Development and Student Survey

Green Living / Sustainable Community – Client: Undisclosed

Campus Advantage was engaged in March 2011 to perform an analysis of a proposed 600-bed student housing development in Berkeley, CA. The focus of the analysis was to determine whether a sufficient market existed for a new off-campus student housing project with a significant sustainability component (LEED Platinum and/or Living Building Challenge), and if the market conditions supported the investment required to develop such product.

Campus Advantage’s research included a large-scale, statistically valid student survey; university overview, including enrollment trend analysis; and a market analysis, including both existing competitors and future construction. The aforementioned student survey included a large component dedicated to evaluating student opinion of a variety of sustainable FF&E, options including various community amenities and in-unit energy budgeting hardware. Additional components of this study included references to the city’s development plan for the subject site neighborhood and a review of the Living Building Challenge.

Through extensive market research and analysis, Campus Advantage concluded that the proposed project appeared viable with a likelihood of success and supported this conclusion with collected market data and a financial pro forma for the property.

Wayne State University

Student Housing Case Study: Wayne State University

New Development

Detroit, MI – Client: The Union at Midtown

Campus Advantage was engaged in early 2008 by a private developer to perform a market analysis and feasibility study for a site in Detroit near the Wayne State University campus. Campus Advantage evaluated the on- and off-campus housing market, analyzed historical enrollment trends and future growth at the University, and conducted informal interviews with students to determine the potential demand for a new student housing development.

As a result of the study, Campus Advantage came to the conclusion that the Detroit student market could absorb the proposed project, given its superior location and lack of other purpose-built product in the market. The Wayne State market could be characterized by properties that were built in the early 1900s and contained 100 beds or less. One- and two-bedroom apartments were most prevalent, with only two properties offering a three-or four-bedroom option. Furthermore, very few properties included any amenities, furnishings, or an all-inclusive rent option. The Union at Midtown, with 140 beds on three levels and ground-floor retail, offered a unique living experience for students in this market and leased to 90% before opening in fall 2011.