Project Category: Consulting
Liv+ Arlington
Student Housing Case Study: Liv+ Arlington
Location: Arlington, Texas
University: University of Texas at Arlington
In 2016, Stark Enterprises engaged Campus Advantage to perform a Market Analysis and Feasibility study for Liv+ Arlington — a new 789-bed student housing development near the University of Texas at Arlington (UTA). The market study included an analysis of on- and off-campus housing, rental rates, concessions, enrollment, and the University’s plans for future growth. Campus Advantage compiled recommendations for the development project, including a unit mix, amenities, apartment features, marketing tactics, and rental rates based on their findings. All recommendations were tailored to increase interest from the unique UTA student demographic plus factored in the University’s evolution from a primarily commuter campus.
Stark Enterprises continued to engage Campus Advantage for design and development consulting throughout the development’s planning and design process. Community spaces were carefully designed to contribute to residents’ academic success and wellness as well as peak interest from prospective students and parents during tours. The two-story clubhouse was designed to include a variety of study spaces and a spacious computer center to accommodate varying study styles and group sizes while remaining lively and inviting. The pool deck and courtyards were also carefully crafted to provide unique spaces for students to lounge, socialize, unwind, or study. To differentiate itself within the Arlington market, Campus Advantage recommended Liv+ feature a fresh market café to provide residents with 24/7 access to a variety of convenient, healthy and satisfying snacks.
Campus Advantage’s affiliate marketing partner, Catalyst, also worked closely with Stark Enterprises to develop the Liv+ brand and create marketing materials that would highlight the one- of-a-kind experience the development would offer. A strategic marketing plan was created to sell the Liv+ brand through online digital strategies as well as traditional grassroots marketing efforts. It was imperative to sell the upscale resident experience in addition to the development’s amenity offerings while the project was under construction as several new developments had recently delivered, and future developments were in the pipeline.
Liv+ Arlington opened in fall of 2018 and quickly developed a strong reputation at UTA for its robust amenity package, unmatched Students First® residence life programming, and customer service focused management team. The property’s J Turner Research Online Reputation Assessment score is 21 points higher than the market average; a true testament to resident satisfaction and the strong rapport built between management and residents. The management team also developed close relationships with key UTA on-campus departments, securing master lease contracts with both athletic and academic programs. The strategic marketing efforts, key relationship building, and dedication from the on-site team resulted in the property achieving 96% occupancy for fall 2019.
“Our cohesive partnership with Campus Advantage has been instrumental in the success of Liv+ Arlington. Together, we have built strong relationships with UTA, devised and deployed aggressive marketing strategies to achieve occupancy goals, and created a rewarding living experience for residents who choose to call Liv+ Arlington their home. Stark Enterprises was built on the philosophy of creating spaces that evoke visitors’ enjoyment, and we are proud of the Liv+ brand and experience we have built together with Campus Advantage to continue that philosophy. We look forward to delivering this unique product to other markets together in the future.” – Stacie Schmidt, Vice President of Marketing and Communications for Stark Enterprises.
About Stark Enterprises:
For over 40 years, Stark Enterprises has been developing and managing generational assets that leave visitors with lasting impressions. Stark’s nearly $2 billion portfolio consists of retail, entertainment, office, residential, hotel and student housing environments, totaling approximately 8 million square feet, located in over nine states. With over $1 billion under development, Stark properties are always managed with the company’s long-term investment strategy in mind and are continually recognized by customers and industry leaders as among the most beautiful, well operated and maintained properties in the nation.
Case Studies
Fort Collins, CO and Charlotte, NC
Student Housing Case Study: Fort Collins, CO and Charlotte, NC
Due Diligence
Campus Advantage performed due diligence on two potential acquisitions in Fort Collins, Colorado and Charlotte, North Carolina in June 2016. Campus Advantage’s approach to the due diligence process included the following components.
Lease Audit
Campus Advantage meticulously examined each lease file and guarantor agreement for all current and future residents who pre-leased for the upcoming year. The data documented on the lease files was compared to the rent roll to ensure a proper calculation of the properties’ revenue. During the process, student demographics were also noted to better assess the student base at the properties, 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 properties. Campus Advantage discovered numerous missing lease files, and the investor was able to negotiate a guaranty with the seller. Incorrect concessions and rent premiums were also identified during the audit and brought to the attention of the investor.
Property Inspection
Both properties underwent a physical inspection, including all units and common area spaces. All damages were noted and compiled into the report to produce capital expenditure projections. Campus Advantage found construction punch items that were skipped and landscaping projects that were deferred, allowing the investor to negotiate the completion of these projects before purchasing the assets. The CA facilities team also identified future Wi-Fi upgrades that needed to be added into the five-year capital plan.
Market Analysis
The Campus Advantage team thoroughly analyzed the Fort Collins and Charlotte markets to assess the properties’ positions in the markets and confirm revenue assumptions made in the underwriting. Team members also consulted a variety of primary and secondary sources to compile a complete pipeline of future student housing development in both markets. Developments not released to the public yet were identified, allowing the investor to make changes to their underwriting to factor in the additional supply.
After all the data was compiled and analyzed, Campus Advantage recommended that the investor move forward with purchasing both acquisition opportunities. The investor closed on the Fort Collins property in December 2016.
Client endorsement:
“Campus Advantage completed two due diligence reports for [Company] in the summer of 2016: Charlotte, NC and Fort Collins, CO. They provided us with valuable information in regard to the properties’ overall physical condition, lease file audit, and supplied us with detailed information on various items that needed to be addressed during the due diligence period. Campus Advantage also supplemented the due diligence reports with a market analysis. These analyses gave us a full overview of the universities’ enrollment, current competitive market, and pipeline, which helped us with our decision in acquiring the assets. Campus Advantage was given a short window to deliver these reports, and both were delivered to us on time. They were also available to us whenever any follow-up items needed to be addressed. Their work is greatly appreciated!”
The Luxx
Student Housing Case Study: San Antonio, TX
Market Analysis and Feasibility Study
Campus Advantage was engaged by a private developer to perform a market analysis and feasibility study for a new development near the University of Texas at San Antonio (UTSA). 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. Campus Advantage discovered that UTSA was transitioning from a regional school, serving mostly commuter students, into a major university that recruits students from across the state and abroad. In 2002, their total enrollment was 22,016, of which 62% originated from Bexar County, where the campus is located. Fall 2015 had a total enrollment of 28,787, a 31% increase. Bexar County residents dropped to 47% of the population, and students coming from other counties in Texas increased over 83%, accounting for an additional 6,000 students. International students, as well as out-of-state students, almost doubled as well.
Campus Advantage’s analysis included the following:
Market:
- An overview of competitive properties in the market
- A rate analysis of competitive properties
- An overview of new developments in the pipeline
University:
- Enrollment trends
- Enrollment projections
- An overview and rates for on-campus residence halls/apartments
New Development:
- An analysis of the proposed site location
- Rate recommendations
- Amenity recommendations
- Operational recommendations
- Marketing and leasing recommendations
- Proposed unit layouts
- An absorption analysis
As a result of the study, Campus Advantage concluded that the San Antonio student market could absorb the proposed project given its excellent location, the lack of a freshman live-on requirement, and the relatively few number of on- and off-campus beds. Campus Advantage knew the market would be very competitive since all nine of the off-campus student housing properties were newer product and offered desirable amenity packages, so extra focus was placed on the unit layouts and unique amenities, including a two-story fitness center and Vegas-style pool area. These amenities made the development stand out from the competition and created a strong level of interest with the students. The property, with 690 beds, opened at 94% occupancy in fall 2014, while the rest of the market averaged 89.6% occupancy. Since the desired occupancy was not achieved in the initial lease-up, the developer hired Campus Advantage to manage the property in May 2015.
Plymouth, NY
Student Housing Case Study: Plymouth, NY
Operational Assessment
Campus Advantage was engaged by the owner/operator of a portfolio of properties serving Plymouth State University. The owner’s goal was to sell the assets and retire, but they knew they needed to improve operations and increase occupancy before finding a prospective buyer, so they hired Campus Advantage to perform an operational assessment. In order to provide operational recommendations, the Campus Advantage team interviewed the site staff, toured the properties, conducted student intercept surveys, reviewed historical documents, and surveyed the market. Operational data and budgets provided by the owner were reviewed to create a comparative budget using industry benchmarks to illustrate the variances versus an average portfolio of this size. Campus Advantage primarily focused on identifying ways to streamline operations to increase efficiency. Furthermore, the team offered suggestions to strengthen the portfolio brand as the properties were located throughout the town at multiple locations and did not have a uniform style.
Campus Advantage’s assessment included the following:
Market Factors:
- An overview of competitive properties in the market
- A rate comparison to market averages
- Enrollment trends for Plymouth State University
Marketing and Leasing:
- Branding recommendations
- Recommendations on tiered incentives for renewals
- By-the-bed, individual leasing implementation
- Website review and recommendations
- Strategies to track effectiveness of marketing tools
Facilities:
- Recommendations on additional amenities and outdoor features
- Recommendations on audio/video features in the leasing office
- Preventative maintenance schedule to focus on sustainability
Operations:
- Additional training recommendations
- Staffing/job duties assessment
- Recommendations on management systems and accounting procedures
Residence Life:
- Event schedule implementation
- Advisement on campus relations
After providing the initial operations assessment, Campus Advantage was subsequently engaged to provide operations consulting to assist with the implementation of the recommendations. During Campus Advantage’s consulting engagement, the portfolio reached pre-leasing goals at a record rate and was 100% pre-leased by February for an August move-in. The owner was then able to successfully sell all of the assets within the portfolio.
Morgantown, WV
Student Housing Case Study: Morgantown, WV
Operational Assessment
In January 2016, Campus Advantage was engaged to provide an operational assessment along with ongoing marketing and leasing support for a student housing complex in Morgantown, West Virginia. This unique, two-part, 1,312-bed complex is composed of an apartment section and a traditional residence hall. The complex was newly constructed but opened with very low occupancy, so the owners needed a third-party perspective on how to improve marketing, leasing, operations, and resident retention. In order to provide operational recommendations, the Campus Advantage team interviewed the site staff, toured the properties, conducted student intercept surveys, evaluated operating procedures, reviewed historical documents, and surveyed the market. Operational data and budgets provided by the owners were analyzed and compared to industry standards to identify excessive expense variances.
The operational assessment was provided to the owners with recommendations primarily focused on achieving higher occupancy. The owners hired Campus Advantage as a leasing consultant to assist with tackling the leasing obstacles and achieving the occupancy goal.
A sampling of Campus Advantage’s recommended improvements:
Marketing and Leasing:
- Refreshed the property branding and marketing materials
- Differentiated the identity of the apartments and the residence hall
- Relocated the leasing office and increased organization
- Relocated the model unit
- Revamped the model unit aesthetics
- Increased social media usage
- Revised the rate structure
- Implemented a renewal campaign
- Revised the website to promote both communities
Facilities:
- Revised staffing structure
- Made capital expenditure recommendations
- Implemented a unit inspection schedule
- Made improvements to the Wi-Fi network and amenities
Operations:
- Implemented a resident satisfaction survey
- Implemented a parking permit structure
- Made staffing and training recommendations
- Implemented new policies and procedures to increase efficiency
Residence Life:
- Made co-vending recommendations
- Recommended event and programming ideas
- Made programming promotion and social media recommendations
After implementing Campus Advantage’s recommendations and utilizing the CA consulting team to assist with the marketing and leasing efforts, the residence hall’s occupancy increased 44%, and the apartment occupancy increased 31% from August 2015 to August 2016.
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.