Raleigh, NC Student Housing Portfolio, DST

Raleigh, North Carolina

ASSET CLASS:  Class A Student Housing Portfolio
OFFERING SIZE:  $46,217,570
MINIMUM INVESTMENT:  $100,000
LEVERAGE:  50.79%
YEAR BUILT:  2014, 2004 (Renovated in 2012), 2012
# OF PROPERTIES:  3
# OF UNITS:  247
# OF BEDS:  890
HOLD PERIOD:  7-10 Years
TARGETED YR.-1 RETURN:  5.00%

Campus West at Tryon is a 54-unit student housing community that offers premium three-bedroom fully furnished apartments. The CW NC Property is less than four miles from the University campus, making it a desirable option for students seeking quality off-campus housing. Residents can enjoy their own private bedrooms and bathrooms, all equipped with high-end finishes including granite countertops, stainless steel appliances and other state-of-the-art finishes. The CW NC Property is pet-friendly, offers ample parking, and includes access to all amenities at University Village at 2505, a premier student housing property located less than three miles down Tryon Road.

College Inn is a 121-unit student housing property located within walking distance to the University. The CI NC Property offers a mix of fully furnished floor plans, including two-, three- and four-bedroom options along with the option of private bathrooms. Residents can enjoy a variety of community amenities, including an expansive game room, fitness center, tanning bed, computer lab with free printing, a pool with sun deck and on-site dog park. Value-add upgrades are planned for 121 units at the CI NC Property. These upgrades will include replacing or refurbishing countertops, installing wood-style flooring, installing new appliance packages, and upgrading fixtures, hardware and lighting.

University Village at 2505 is a luxury off-campus student housing community that offers fully furnished, all-inclusive and pet friendly four-bedroom apartment options. The UV NC Property offers a large selection of upscale amenities including a resort-style pool, expansive clubhouse with 24-hour fitness center, free Starbucks, beach volleyball and complimentary printing at the on-site computer lab. Residents can also take advantage of the free shuttle bus that goes back and forth to the University campus.

Buy and hold and sell when there is an opportunity.

Each of the Properties is located in Raleigh, North Carolina in the Raleigh, NC Metropolitan Statistical Area (MSA). The Raleigh MSA has a population of 1,388,381 million, and is projected to increase by 155,755 by 2024, reflecting a 2.1 percent annual population growth. The Raleigh MSA features an average household income of $100,233 and a median household income of $75,374. Over the next five years, median household income is expected to increase by 12.1 percent.5 Raleigh is nationally recognized as a leading urban center. With Durham and Chapel Hill, Raleigh anchors the Research Triangle, a major center in the U.S. for high-tech and biotech research. The top companies in the region — including IBM, Cisco Systems and SAS Institute — are among the country’s best employers. They also lead the way in hiring new graduates of the University.

The University, sometimes referred to as "NC State", is a public research university established in 1887. NC State is the largest four- year institution in North Carolina and is separated into 10 different colleges including Agriculture and Life Sciences, Design, Education, Engineering, Humanities and Social Sciences, Management, Natural Resources, Physical and Mathematical Sciences, Textiles, and Veterinary Medicine. The University offers bachelor’s degrees in 106 fields; master’s in 104 fields; and doctorates in 61 fields. Current enrollment is nearly 36,000 undergradute and graduate students in addition to more than 9,000 faculty and staff.

The University has been implementing a 2025 Enrollment Plan that calls for enrollment growth to 38,700 by 2025 (13.8 percent growth). In addition to enrollment growth, this long-range plan aims to improve the quality and standing of the University's academic programs, enhance the success of students, increase globalization engagement, enhance diversity, and develop new academic programs.

Over the past decade, the student housing industry has experienced significant growth. As the student population has grown, specialized student housing developers have stepped in and built off-campus housing alternatives, with many offering leasing-by-the-bedroom formats, luxury amenities tailored to student needs, roommate matching, and individual leases backed by parental guarantees, which allow the student/parents to be responsible solely for their student’s rent and any delinquent rent of roommates.

Today’s student renters typically grow up in their family home with their own bedroom and many times their own bathroom. Due to this current trend, parents and students visiting on-campus housing are often disappointed to find older buildings made from dated materials with little to no privacy. Because on-campus housing is suffering from aged facilities and deferred maintenance, on-campus occupancy rates have declined in many markets and students eligible to live off-campus are seeking more modern and private alternative living arrangements. New communities are being built to meet the demands of today’s students, in many cases offering private bedrooms and bathrooms, wireless high-speed internet access throughout, computer labs, tanning beds, theater rooms, large resort style swimming pools and hot tubs, and many more appealing amenities.

In addition, the student housing sector is perceived as “recession resistant” due to its performance during the Great Recession.1 The primary driver of student housing is college enrollment, and when the economy loses jobs it tends to gain students. According to the National Center for Education Statistics (NCES), U.S. enrollment in post-secondary education grew by 4.7 percent in 2008 and 6.3 percent in 2009, the highest growth years since at least 1981. At the same time, demand for student housing increased, and the performance of the student housing industry rose.

Assets Under Management:: $7.3 Billion
Total Private Placements: 232
Total Assets Purchased: $7.1 Billion
Years In Business: 50
Market Share: 28%
Full Cycle Multifamily Offerings: 9
Average Hold Period (Years): 3.74
Average Annualized Return: 9.57%
Average Return of Equity: 129.08%

 

Management Company: Landmark Property Management, LLC
Beds Managed: 10,000
Date Founded: 2004
Headquarters: Athens, GA

The Properties are managed by Landmark Property Management, LLC, an affiliate of Landmark Properties. Landmark Properties is a fully integrated real estate firm specializing in the acquisition, development and management of high-quality student housing communities. Backed by a deep understanding of the market, a commitment to quality and a strong track record of success, Landmark Properties is one of the foremost developers and managers of premier off-campus student housing communities in the country.

Founded in 2004, Landmark Properties has over 750 employees, including more than 150 at its corporate headquarters in Athens, GA. With more than 10,000 beds under third-party management, Landmark Properties' management services are focused on maximizing value while providing and delivering an exceptional resident experience.

Targeted 1st-Year Cash-on-Cash Return: 5.04%
Targeted Cash Range: 4.74% - 5.81%
Targeted Cash Average: 5.42%

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The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by the issuing company, or any affiliate, or partner there of the issuer. All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to the “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. Past performance and statements regarding current occupancy and earnings are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by the issuer, or one of its partner/issuers. The issuer does not warrant the accuracy or completeness of the information contained herein. Some offerings are subject to a “cooling off” period and are not available to all investors. 
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Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC, and the issuer are not affiliated.