Location: Tampa, Florida

University: University of South Florida

Campus Advantage was hired as a third-party manager of ON50, a 444-bed student housing property in South Florida, when a large institution acquired the property with a partner in 2010. Campus Advantage later acquired ON50 in 2014 when the property came up for sale. It was acquired in part due to its excellent location in Tampa, Florida, across 50th Street from the University of South Florida campus. Built in 1998, the property offers one-, two-, three- and four-bedroom units and 15 different unit types. The challenge for Campus Advantage was in dealing with this large variety of unit types and placing tenants together within the various units. From a physical standpoint, Campus Advantage also had to find solutions to the issues caused by deferred maintenance.

Upon acquisition, Campus Advantage immediately implemented a value-add strategy to refresh the property. The plan devised by Campus Advantage and sister marketing firm, Catalyst – a real estate marketing specialist agency – included a refreshing of the brand to create a new look and feel, updating the amenity package, and upgrading 30% of apartment units.

To address deferred maintenance, the team replaced all of the roofs, re-painted the entire exterior of the property, cleaned the mature landscaping, and renovated a select number of units to modernize, installing vinyl plank flooring, upgrading bathrooms including vanities, and replacing HVAC systems. A large portion of the $224,000 capital investment went towards improving amenities to meet the expectations of students in the South Florida market, including a complete revamp of the pool area and the addition of an outdoor game area in the courtyards. The completed property now offers a computer lab with free printing, a billiard and study lounge, as well as a community kitchenette with attached event area. The property also offers a full-size outdoor basketball court, an oasis style pool, a resort style hot tub, a 10-acre nature preserve, a hammock garden, and a recreational courtyard with bocce balls, horseshoes, cornhole and ring toss.

To further elevate interest in the property, the marketing specialists at Catalyst worked with the on-site team to revitalize the property’s brand with a vibe the student audience could relate to. As part of the Campus Advantage family of properties, residents were able to enjoy the signature residence life program Students First™, a unique approach to resident living which fosters a dynamic, engaged community and offers a pool of resources to support residents’ journeys to success. The integrated marketing and residence life approach, combined with the capital investment strategy, worked to enhance the overall appeal of the property in the marketplace.

By implementing this unique strategy, Campus Advantage increased the value of ON50 and closed on its sale in April 2017. In the 36 months from its acquisition date to the sale of the property, Campus Advantage achieved Net Operating Income growth of 17.1%, or 5.2% compounded annually. Residents of ON50 were able to benefit from Campus Advantage’s expertise while the company enjoyed a quick and profitable return on its investment.

 

Location: Tampa, FL

University: University of South Florida

Campus Advantage acquired 42North, a 420-bed student housing property, in 2014 after third-party managing the asset for one year.

With a short-term business plan to inject capital into an older property in an effort to increase its value in the University of South Florida market, Campus Advantage identified and executed a value-add investment strategy including:

• Infusing capital to cure deferred maintenance
• Repainting the exterior and reroofing all buildings
• Improving the IT infrastructure, including installing new fiber lines and wireless Internet infrastructure and rebuilding the cable infrastructure
• Upgrading unit interiors with new bedroom furniture and appliances
• Adding and improving amenities, including new fitness center equipment, a clubhouse revamp, and adding a hammock garden and dog park

To increase lead traffic to the office and website, Campus Advantage worked with marketing partner, Catalyst, to establish an integrated marketing approach including elements such as a themed move-in and resident appreciation campaign to deepen residents’ connection to the property, early and consistent renewal campaigns targeting residents, and integrated (online/offline) media campaigns to attract new leases.

With these strategies, in addition to maintaining and operating the property to meet the company’s high standards, Campus Advantage increased 42North’s net operating income by 25.8% in 36 months. In alignment with its plan, Campus Advantage closed the sale of the property in May 2017, with its involvement in renovations resulting in a significant increase in property value.