|Number of units||176|
Jones Lang LaSalle, L.P., JLL Real Estate Limited (collectively, “JLL”) proudly presents the Block 43 Portfolio (the “Portfolio”), a 344-unit / 1,176-bed community comprised of the directly adjacent Block 43 Cottages (“Cottages”) & Courtyard (“Courtyard”) apartments in Greensboro, North Carolina. Despite announcing classes to be held primarily online in August, September 2020 occupancy for the market exceeded 96%, highlighting the fundamental strength of the market which has averaged 95% off-campus occupancy since Fall 2017. The assets, which have historically operated as two separate communities, have been combined since current ownership’s acquisition of Courtyard in mid-2019, offering operational efficiencies to a future owner.
The market, which is comprised of 7 higher education institutions, is flagshipped by University of North Carolina at Greensboro (19,764 students) and North Carolina A&T State University (12,754 students), which just announced a 5th consecutive year of record enrollment. Outsized NOI growth is available through completing a renovation program (9% of the units have been upgraded), implementing a water expense savings initiative, and adjusting the cable & internet policy.
Growth Market – North Carolina was voted the Best State for Business from 2017-2019 and experienced the 3rd-highest population migration by state over the last decade.
Large University MSA – Seven higher education institutions enroll over 50,000 students sit within the immediate vicinity of the Portfolio.
Strong Demand Fundamentals – Off-campus student housing occupancy is projected to be above 95% through 2024 & on-campus occupancy has been nearly 100% since 2012.
Veritable NOI Upside – In addition to expense savings available by combining the two assets, there is outsized NOI growth available:
- $65,800 of utility savings available through water overhaul program (quote available).
- $141,000 of cable & internet savings through internet revamping (quote available).-
- 91% of units remain unrenovated and are collecting rents below the properties’ best comparable assets.
Financing Flexibility - Buyer has an opportunity to acquire the assets with attractive existing financing or place new debt.