side as well. Investors shouldn’t pay for their partner’s on-the-job training. CHOOSING THE RIGHT MARKET Choosing the right market can make or break real estate investment opportunities. When approaching overbuilt markets, in- vestors should take caution. High vacancy rates and a recent influx of new develop- ments are common characteristics of these markets. This poses the threat of a new student housing development becoming absorbed among the others. However, mature markets with the right location, a favorable supply-demand outlook and a product that meets the market can still provide investment opportunity. Student housing demand is at an all- time high, due to colleges’ and universities’ lack of adequate accommodations and
students’ shifting tastes in living preferenc- es. The trend toward more upscale living for modern college students has created a special niche in real estate investments. Knowing what features are superfluous or an absolute must is not always easy but can give great insight to investors. A student housing community in the right location is a vital component to its success. Some of the most desirable locations have a proximity to campus and other desti- nations such as entertainment or retail districts. Amenities should also be kept in mind. Having superior or specifically tailored features can compete with what is already available in the market. Now more than ever, students and parents are expecting amenities such as socializing spaces, TV lounges and speedy Wi-Fi. However, the investment doesn’t
have to follow what is already present in the market; sometimes product differenti- ation can set the development apart from the competition. For example, for a more outdoorsy student body, plenty of safe bike racks may be desirable as opposed to convenient access to retail areas. The key is to have a finger on the pulse of the student community and assess what needs are already being met and which ones have yet to be catered to. •
BriceWillis is the vice president, capital markets of Stonemont Financial, a national real estate investment firm specializing in providing capital for single-tenant build-
to-suit developments and sale-leasebacks, as well as student housing investments. Brice has more than 9 years of experience in real estate investment banking and providing developers with a full platform of capital raising products and build-to-suit financing.
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