Student Housing – Currently Owned

UNIVERSITY VILLAGE AT SLIPPERY ROCK

Slippery Rock, PA (Pittsburgh MSA)
Value Add/Opportunistic Acquisition
Investment Description

University Village at Slippery Rock Student Apartments was acquired in August 2010. The property is located less than a I/4th of a mile from Slippery Rock University (a I0,000+/- Student PA State University) in Slippery Rock, PA. This 200-unit (632 bed) property, built in 2008, was acquired out of a 363-bankruptcy sale for a price significantly below replacement cost. The property has been consistently leased at 96% to 100% for the last 9 years. MVHP was responsible for overseeing and completing approximately $2.6 million in capital improvements and deferred maintenance on the subject property.

Current pre-leasing for the 2019-2020 lease term is 85% (as of 02/24/2019) with a rent increase to date equal to 3.5%.

Expected  Deal ROE 13.5% ROE to date
Expected  Deal IRR Expected Deal IRR of 25% on Sale.The LP should receive a multiple of approximately 2.2x and a 20%+/- IRR; the GP should expect to receive a 50% IRR and 4.5x multiple upon eventual sale of the subject property.
Hold Period Expected to be 10 year hold period.