We have continued to enhance our 7-Tier investment strategy to produce the greatest risk-adjusted returns to our investors. Data Driven Investment Thesis Sector Strategy: Student Housing Lower risk asset class that has proven to be a more resilient investment during times of economic uncertainty. Sector Tier Strategy: Power 4 Conference Universities Lower risk tier of best-in-class educational institutions with lower acceptance rates resulting in ability to manage economic turbulence. UC Berkeley admitted only 11.6% of a record 125,910 applicants in 2023-2024 school year. Specific Market Strategy: University of California, Berkeley 1. As the #1 Best Public University in the World, Berkeley is one of the most competitive student housing markets in the country with a growing student population of 45,882². 2. UC Berkeley has the greatest housing shortage of all universities within the University of California system. UC Berkeley only housed 27% of its students in 2024 and only guarantees 1-year of housing. 3. Berkeley has the most favorable topography and geographical conditions for private operators relative to other campuses. Neighborhood Strategy: 6-block pedestrian radius to UC Berkeley campus Highly pedestrian, highly amenitized and premier southside location demands premium rents. Every year, 73% of UC Berkeley’s student body must secure off-campus housing, providing a built-in demand generator and ensuring high occupancy rates and consistent rent growth for the closest properties surrounding campus.
Product Strategy: New Construction or New Redevelopment Due to a lack of on-campus housing options, there is a fierce competition for housing in general. There is an even fiercer competition for new or quality housing product. Our strategy is to focus on separating us from the competition by providing the highest quality product while staying affordable relative to on-campus housing options. Demographic Strategy: Plurality of Students We target the 73% of off-campus student residents, primary upper classmen, transfers, and graduated students. Our model creates rental rates which are 25% below the median rental rates in the submarket while maintaining first in class accommodations and amenities in immediate proximity to campus which keeps our occupancy at over 98% in comparison to 87% in the greater submarket. Operational Strategy: Local Operations w. Scale & Vertically Integrated Management Student housing is a highly management intensive product type. We built our in-house property management firm to specialize in only student housing around UC Berkeley to provide the best experience to our residents and communities.
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