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.

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.

Campus Advantage was originally retained in September 2009 to perform a market profile of the Virginia Commonwealth housing market. The focus of the analysis was to make general assumptions regarding the on- and off-campus housing market at VCU and evaluate the potential demand for a new student housing development. As a direct result of the data gathered during the market profile, the developer then engaged the CA team to conduct a more in-depth analysis of the project and produce a full Market Analysis and Project Feasibility Study. This level of research required members of the Campus Advantage team to travel to Richmond to meet with VCU and City of Richmond officials, as well as perform intercept surveys with VCU students.

Campus Advantage concluded that the Richmond student market had the depth to absorb the proposed project, given the fast-growing student population at VCU and the project’s superior location. The site was located in an up-and-coming area of the market, due to recent campus expansion. Additionally, the off-campus Richmond market lacked any purpose-built student product. The majority of the properties surveyed in the main student housing corridors had very limited amenities, especially those geared toward students, such as a residence life program or all-inclusive rates. 8 ½ Canal was the first purpose-built property to enter the Richmond market and offered a plethora of amenities. The property also introduced an abundance of four-bedroom apartments, a unit type only found in one other off-campus property.

Construction on 8 ½ Canal began in summer 2010 for a fall opening in 2011. The Campus Advantage team was once again engaged to perform the initial operations and lease-up of the property, pre-leasing the property to 100% before it opened in fall 2011. The fast lease-up and continued success of the property exhibits the desirability of purpose-built product in an untested market.

The building includes 160 units with 540 beds on six levels and parking on two levels. 8 ½ Canal is also an eco-friendly project which was designed with green principles in mind in accordance with the LEED accreditation system.