|Property Type||Multi-housing / PRS,Multi-housing / PRS|
Jones Lang LaSalle (“JLL”), in conjunction with Ten-X, has been retained on an exclusive basis by the Owner to arrange the sale of University Gate Apartments (the “Property”), a fee simple, student housing property in Erie, PA. Constructed in 2006, the Property supplies Penn State Behrend with 132 (485-beds) of off-campus housing units.
The Property is located directly North of Penn State Behrend, the third-largest university in the Pennsylvania State University system. The Property is comprised of nine (9) one-to-three-story apartment buildings and is currently 77.3% leased as of September 2021. The opportunity allows an investor to acquire a cash-flowing asset with rising occupancy and continue an ongoing unit-renovation plan resulting in a proven 15.2% rental premium.
Auction Start Date: Monday, November 29th
Auction End Date: Wednesday, December 01st
UNDERSUPPLIED MARKET The campus provides enough dormitory beds for approximately 1,900 students, less than half of the reported full-time student body – the reported monthly charge for dormitory housing averages $708 per month, increasing demand for off-campus alternatives.
INCREASING OCCUPANCY The Property has leased up significantly for the 2021/2022 school year and is currently 77.3% leased as of September 2021, representing a 1.8x increase in occupancy from December 2020.
PROVEN VALUE ADD OPPORTUNITY Current ownership has recently renovated 12 units (47-beds) and increased market rents for the refurbished product by 15.2%. With 120 units (438-beds) currently un-renovated, the Property provides investors with a value-add opportunity, pushing revenue and increasing net operating income.
CAMPUS LIFE RETURNS Campus life is back at Penn State Behrend, largely driven by student and staff COVID-19 vaccination rates. As of September 2021, 76% of students, 100% of administrators, and 89% of full-time campus employees and academic personnel had uploaded their proof of vaccination. In total, the overall campus vaccination rate is much higher than Erie County’s rate of 58%.
FEE SIMPLE SALE The current opportunity would allow an investor to step into fee simple chain of title direct from a CMBS special servicer.