The Station on McIntosh
Completion Date: August 2016
• In late September of 2015, Campus Village Development contracted with an equity group out of Atlanta, Georgia to develop a 145 bed community complete with a class A amenity package.
• Although the project had over 40 weather day delays, it was delivered in August of 2016 and under budget.
• The property’s first year occupancy was 98%+ and it achieved average rents that exceeded the original underwritten rents by nearly 6%. In terms of its investment returns, the project’s first year performance enabled it to significantly exceed the targeted cash on cash return of 12% and projected IRR of 20%.
City Place Ann Arbor
Completion Date: Fall 2012
• This 143 bed, University of Michigan community, eventually came to be amid a four year entitlement and site plan process with the City of Ann Arbor.
• With the successful conclusion of the entitlement battle in late 2011 came the challenge to procure financing for the project amid the severe retraction in the construction credit market.
• By partnering with a construction union pension fund, who was aggressively seeking construction projects for its members, and procuring construction debt via an equity group out of New York, Campus Village was able to move the project forward in January of 2012.
• Campus Village Development oversaw the project and relied heavily on its relationship with Wolverine Construction from Grand Rapids to have the two building project completed by fall of 2012 – an 8 month build cycle that was completed on time and 3.7% below budget.
• Since its completion the project has been well received in the market. Campus Village Management has an average occupancy rate for the project of 98% and for multiple years, the property has been pre-leased at 100% for the coming school year.
• In the last three fiscal years (including 2017), the property has achieved average revenue growth of 8% and NOI growth of 11%. Given its location and the strength of the University of Michigan market in general, the project has an estimated market cap range estimate of $16.5 – $17.25 million which is a healthy $115k – $121k per bed valuation.
Campus Village at College Station
Completion Date: 2012
• To date, this is the largest project Campus Village Development has undertaken boasting a luxury amenity package and the first ever student housing lazy river.
• Developed in two phases that began in 2010 and ended in 2012, the project totaled 1,070 beds. Campus Village Development managed both phases of the development project working closely with Andres Construction as the general contractor to bring both phases on-line in time and at a total project cost that slightly exceeded $47 million which was 2.6% less then budget.
• Since it’s opening, the project has been well received in a market that is heavily saturated and very competitive. In addition, it has slightly exceeded its original revenue underwriting for fiscal year 2016 by 1.2% and has provided an annual cash on cash distribution return in excess of 12% to Campus Village.
• Based upon the current market, the property has an estimated market value in excess of $67 million which compares favorably to the original cost and the current equity position.
Campus Village Center
Completion Date: August 2007
• Campus Village developed Campus Village Center on the site of a former car dealership in East Lansing Michigan. The project houses students of Michigan State University. The 1st phase of the project came online in August of 2004 and consisted of 60 apartments and 222 beds.
• Each bedroom boasts a private bathroom and comes fully furnished including big screen TV’s.
• In addition the project had a mixed use component due to the underlying zoning. The first floor of the building on Michigan Ave had offices as well as student amenities including a game room, fitness center, computer lab, and lounge. The project proved to be very popular with the students and exceeded all occupancy and rent growth projections.
• In August 2007 Campus Village brought online the 2nd phase of the project. The 2nd phase consisted of a wider variety of apartment types totaling 46 units and 133 beds. In addition phase II included a four story parking deck attached to the building which provided ample parking for both phases and the commercial tenants. The ground floor included more office space as well as some service related commercial tenants. The entire project was sold to EDR in October 2012.
