Student Housing – Previously Owned

CANOPY STUDENT APARTMENTS

Gainesville, FL
Value Add Acquisition
Investment Description

Acquisition of a Class-A, 240-unit (770 bed) student housing property located 1 mile from the University of Florida. This property was constructed in 2007-08.

Deal ROE 9.6% to date
Deal IRR 18.5%+/- Expected Deal IRR:
2.5x(+/-) multiple to GP Investors
Hold Period 5 Years

UNIVERSITY SUITES

Raleigh, NC
Value-Add Acquisition - Sold Mid-2015
Investment Description

University Suites, a 136 unit (518 bed) student property, was acquired in August 2011. The property was completed in phases from 2001 to 2004. This property was acquired off-market by MVHP directly from the original developer. The property maintained occupancy levels of 97% to 100% every year since acquisition in 2011. MVHP was solely responsible for completing a $2.2 million renovation, including interior and exterior unit upgrades, the addition of new amenities, a complete renovation of the clubhouse, and a new pool.

Total Investment $21,870,000 Total Capitalization
Required Equity $5,896,000
Senior Debt $14,000,000 from an Agency Lender secured August 2011
Deal ROE 10.5%
Deal IRR 22.10% Deal IRR;

2.1x multiple to the LP investor; 40% IRR and 3.7x Multiple to GP Investors

Hold Period Sold After 4 Year Hold

AXIS WEST CAMPUS

West Campus, Austin, TX
Core Plus Acquisition - Sold Early 2016
Investment Description

The Axis West Student Apartments were acquired by MVHP in venture with a HNW investor in November 2012. This Class A+ mid-density, student property with structured parking, is located 3 blocks from the University Texas Austin. This 167-unit, 476 bed student property was completed in mid-2011 and acquired from a national developer. The subject provides a dynamic student lifestyle, with state of the art amenities and floor plans, including a beach entry pool, outdoor sound system, grilling areas, Café, Study lounge, and an outstanding fitness center. Unit features included 9′ ceilings, quartz counters, wood floors and stainless appliances.

Deal ROE 8.0%
Deal IRR 10%+ IRR
Hold Period 3 Years

DAIL COLLEGE INN

Raleigh, NC
Value-Add Acquisition - Sold Mid-2015
Investment Description

Dail College Inn, a 121 unit (436 bed) student property acquired in partnership (as a Co-GP investor) with TPCO and an institutional investor in December 2011. Construction of this property was completed in 2005. This property was acquired off-market by the venture directly from the original developer.

Ownership completed a $1.2 million renovation including interior and exterior unit upgrades, addition of new amenities, and a complete renovation of clubhouse and leasing office.

Deal ROE 10.9% Average Annual ROE
Deal IRR 20.1I% Deal IRR
Hold Period 5 Years

Rivers Edge at Carolina Stadium

Columbia, SC (Purchased while at CF)
Major Value- Add Acquisition
Investment Description

Rivers Edge at Carolina Stadium is located less than 1 mile from the main campus of the University of South Carolina, which has an enrollment of 34,000 students.  The property is also located directly across the street from the new USC Baseball Stadium (rated the best collegiate ballpark in the US). This student housing property was constructed in 1999 and consists of 240 units and 486 beds.

This value-add asset has already been significantly upgraded and is competitive with newer product, while still offering new ownership a tremendous upside opportunity. The property’s amenities include a resort-style pool, fitness center, business center, grilling areas, sand volleyball court, basketball court, disc golf, hammock garden, dog park, and a nearby walking trail along the Congaree River.  A $2.5 million renovation was recently completed to include a complete renovation and expansion of the clubhouse, the addition of 95 premium units, additional furnished units, new signage, new exterior paint and more.  The property is 94% leased and rents have increased 3% since YOY since owning the deal.

Expected Deal ROE 11%
Expected Deal IRR 19.65%
Hold Period 5-7 years

THE DEN

Columbia, MO
Core Plus Acquisition
Investment Description

MVHP acquired The Den in Columbia, MO (I mile from the Campus of University of Missouri – 35k+ students) in late 2014. This 158-unit, 552 bed student property was completed in 2014 and acquired from a national developer/owner. The subject provides a dynamic student lifestyle unmatched by any other asset in the market, with state of the art amenities and floor plans, including entry pool, grilling areas, outdoor living rooms, Café, study lounges, and state of the art fitness center.

MVHP has completed a $350,000 upgrade of the subject property.

MVHP sold it’s partnering interest back to the LP investor back in 2017.

Expected Deal ROE 11.0% CoC to date; 10.5% CoC on average expected over the Hold Period
Expected  Deal IRR 8%+IRR (Due to an unexpected enrollment decrease at the University of Missouri)
Hold Period 5 to 7 Years

The Lex

Lexington, KY (Acquired while with CF)
Major Value Add Acquisition
Investment Description

The Lex is a 265-unit/645-bed investment opportunity boasting the premier location for student housing at the University of Kentucky. The property is within walking distance to all university classrooms and 172 restaurants, bars, and nightlife venues. Additionally, the irreplaceable location is home to 23,444 square feet of prime retail space, offering significant upside potential to a new investor.

There is also a recently completed traffic artery lending to increased accessibility, traffic, and visibility to major retail tenants. As the University of Kentucky continues to set new enrollment records, The Lex is primely situated as the mainstay, trophy asset of the Lexington market.

Expected Deal ROE 8%
Expected Deal IRR 17%
Hold Period 5-7 years

University Orchard

Salisbury, MD (Purchased while at CF)
Value Add Acquisition
Investment Description

This Class-A, 2013 constructed student housing property consisting of 204 units/648 beds is located less than 1/2 mile from the main campus of Salisbury University. This is a Value-Add asset that was acquired at a price considerably below market. Furthermore, ownership spent $600k on amenities in the clubhouse and pool area. The Deal IRR returns are 21.17% and annual Yield/CoC average up to 11%. There was existing debt that had to be assumed with this acquisition.

The loan amount is $34 million, with an interest rate of 4.07%, and 1.5 Years of remaining IO (the loan had an total IO period of 3 year). Salisbury University is part of Maryland State University System. It has a total of 9,500+ students and growing on an annual basis. There is only capacity for 22% of the total student population to live on-campus.

Expected Deal ROE 11%
Expected Deal IRR 21%
Hold Period 5-7 years

Midtown 905

Denton, TX (Acquired while with CF)
Major Value Ad Acquisition
Investment Description

Midtown Denton is in Denton, Texas less than one mile from the University of North Texas (UNT). Built in 2011, this purpose-built student property continues to have an excellent leasing history.

The University of North Texas has a 2016 enrollment of nearly 40,000 students and experienced over 11% enrollment growth over the past decade and has only 6,288 beds on-campus with only a freshman on campus living requirement. In addition, Texas Woman’s University (TWU) is located two miles from Midtown Denton. TWU has a current enrollment of over 15,500 students.

New ownership completed a value add program that has yielded a $65 per bed increase. Interior unit upgrades included: vinyl faux hardwood flooring, granite or acrylic countertops, lighting upgrades, cabinet hardware upgrades and furniture upgrades.

Expected Deal ROE 9%
Expected Deal IRR 17%
Hold Period 5-7 years

The Ridge

Gainesville, FL (Acquired while with CF)
Core Plus Acquisition
Investment Description

The Ridge at Gainesville is situated next to the University of Florida (enrollment of over 51,000 students) in Gainesville FL. The Ridge is surrounded with a wealth of infrastructure including major freeway access, dining and shopping centers, and is located on the UF shuttle route. This townhome and 4 story purpose built student community has a mix of 2b/2ba, 4bd/4.5ba and 5bd/5.5ba with garages. The common area amenities stand-alone against the competitors. Included is a large resort style pool, in ground spa, lazy river, 20 ft jumbo tron, fitness center, study lounge, gaming area and small convenience store.

Expected Deal ROE 9.6%
Expected Deal IRR 16.6%
Hold Period 5-7 years

ULinQ North and South

Tampa, FL (Acquired while with CF)
Major Value Add Acquisition
Investment Description

ULinQ North and South is in Tampa, FL, less than 3/4 of 1 mile from the University of South Florida (USF). Built in 2004 (South) and 2005 (North), this purpose-built student property has an excellent leasing history that offers the ability to complete numerous value add opportunities and grow rental income during the hold period.

The University of South Florida had a 2017 enrollment of over 43,000 students and is expected to grow its enrollment by more than 1% each year over the next 5 years. USF only has 4,901 on-campus beds and only requires freshman to live on campus. In addition, off campus rents are projected to grow by 3.3% per year on average (or more) over the next 5 years.

Expected Deal ROE 11%
Expected Deal IRR 20%
Hold Period 5-7 years

DOMAIN AT TOWNE CENTRE

Morgantown, WV
Core Plus Acquisition
Investment Description

The Domain at Towne Centre was acquired off-market in late November 2012. This Class A+, garden-style, student property is located 1.5 miles from the University of West Virginia (34,000+ students) and is part of the 1.5 million SF Towne Centre retail development. This 336-unit, 912 bed student property was completed in mid-2011 and acquired from a national developer/owner.

The subject provides a dynamic student lifestyle unmatched by any other asset in the market, with state of the art amenities and floor plans, zero entry pool, outdoor sound system, grilling areas, Cafe, Study lounge, and state of the art fitness center. Unit features include 9′ ceilings, granite counters, wood floors and stainless appliances.

Expected Deal ROE 11.1% ROE To Date; 11.95% ROE average expected over the Hold Period.
Expected Deal IRR Expected Deal IRR of 20%+ .
Hold Period 7 Years.