Project Category: Consulting Page

Morgantown, WV

Student Housing Case Study: Morgantown, WV

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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the site staff, toured the properties, conducted student intercept surveys, evaluated operating procedures, reviewed historical documents, and surveyed the market.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.

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University of Iowa

Student Housing Case Study: University of Iowa

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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.

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Alexandria Technical

Student Housing Case Study: Alexandria Technical

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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.

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Pepperdine University

Student Housing Case Study: Pepperdine University

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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.

Case Studies