Real Estate Journal — Financial Digest — October 14 - 27, 2016 — 7A
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F inancial D igest
1031 Crowdfunding, LLC Student Housing – The Countercyclical Investment
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markets, we ensure we have a good entry point from a price perspective. Then we institute our added value program that includes furnishing the units, replacing old appliances, as well as upgrading the fitness centers and pool decks. When we add our resident-first man- agement approach to the phys- ical improvements made to the asset, we find students will pay more to live in an improved complex in direct proximity to a major college or university.” Such is the case with Cam- pus Edge, a student housing complex adjacent to Kennesaw
State University Marietta Campus. “With the extensive experience Vie Management has in student housing and with student housing becom- ing a core asset class, we feel this strategic partnership will benefit both parties,” said 1031 Crowdfunding Founder and CEO, Edward Fernandez . “1031 Crowdfunding will pro- vide the equity from the in- vestors and Vie Management will provide a core, turn-key, strong student housing as- set for those investors.” This project adds value for students and investors alike. Once the
s university students have returned to their schools, real estate
upgrade process is complete, every unit will contain high quality furniture and stainless steel appliances, an upgrade students polled said would be a premium option for which they would pay higher rent. When asked why he invests in student housing rather than traditional multi-family apartments, Rosenblum said, “Pricing for student hous- ing assets is generally more favorable than conventional multi-family because it’s an extremely operationally inten- sive business, which limits the pool of buyers. Every year you
turn over 60-70% of your rent roll, which presents risk. But there are benefits associated with that risk, including the ability to increase your entire rent roll yearly if you add value to the complex.” At 1031Crowdfunding.com, we specialize in helping people find solutions quickly. For more information on student housing or to view the Cam- pus Edge DST, please visit 1031Crowdfunding.com. E d w a r d F e r n a n d e z is founder/CEO of 1031 Crowdfunding, LLC based in Orange County, CA . n
i n v e s t o r s h a v e b u s - ily watched o c c u p a n c y r a t e s , r e - s e a r c h e d student pop- ulation num- b e r s , a n d examined lo- cal housing
Edward Fernandez
needs, all in an attempt to take advantage of the rental capital those students will pay this year. According to Real Capital Analytics, $5.7 billion in stu- dent housing transactions oc- curred between January 2016 and August 2016, a $2 billion increase over student housing transactions made last year during the same period. So what is the draw? For many it is the ever- increasing rate of enrollment and constrained university budgets limiting their abili- ties to meet rising demands for student housing. Accord- ing to the National Center for Education Statistics (NCES), enrollment in degree-granting postsecondary institutions was 13.2 million students in 2000, 17.3 million in 2014, and is projected to increase to 19.8 million by 2025. Others invest in student housing because it caters to a recession resistant market. The NCES reported that dur- ing the 31 percent growth of enrollment from 2000-2014, only a 4 percent decrease oc- curred between 2010 and 2014 as a result of the 2008 reces- sion. University enrollment also tends to be countercycli- cal to the rest of the economy; when jobs are scarce, workers seek out new degrees and advanced training to qualify themselves for new jobs. Beyond meeting demand, off-campus, private student housing complexes often offer students a preferable option to on-campus housing. The mod- ern student housing complex gives students a living space that is specifically designed for them with a variety of desir- able amenities. Ari Rosenblum, a 15-year investor of institutional-grade student housing and Chief Executive Officer of Vie Man- agement, has a programmatic approach to successful student housing investing. “By seeking out smaller assets in secondary
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