Services
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Mandate
Acquire off-market or lightly marketed multifamily/student-adjacent assets in Tier 2–3 university MSAs across the Southeast U.S., where enrollment growth and constrained supply can support durable cash flow and value-add upside.
Site / Asset Selection
Entitlement visibility or by-right conversions
Infill or campus-proximate parcels with transit/bike connectivity
Zoning that supports density and parking relief
Comp benchmarking on rents, preleasing velocity, admissions/bed ratios, and pipeline deliveries
Program & Design
Unit mix tailored to local demand (2–4 BR and micro-suite blends)
Study lounges per floor
Ground-floor activation where appropriate
Wired-first buildings with managed Wi-Fi, access control, and package solutions
Sustainability by default: efficient HVAC, insulation, low-flow, LED, durable materials
Delivery & Risk Controls
Phase-gated precon (program, design dev, GMP & buyout), owner’s rep, and third-party QA/QC
Guaranteed max price (where feasible), schedule buffers around academic calendars, and milestone funding tied to inspections
Lease-up risk mitigated via campus partnerships, early pre-leasing, influencer/Greek org go-to-market, and rent-by-bed pricing analytics
Capex & Returns
Target development yields with spread to market cap rates at stabilization
Contingency 7–10% hard + appropriate soft cost reserves
Commissioning and turnover planned around move-in windows
Target Profile
80–400 beds (or multifamily equivalents), walkable/bikeable to major campuses (≤1.5 miles).
Vintage 1995–2015 (or older with clear renovation thesis).
80–400 beds (or multifamily equivalents), walkable/bikeable to major campuses (≤1.5 miles).
Mispriced due to operational inefficiency, deferred maintenance, or suboptimal capex sequencing.
In-place cap rates with path to 150–300 bps NOI improvement via renovation and management upgrades.
Sourcing Channels
Direct-to-owner and manager relationships; campus-adjacent brokers with repeat deal flow; tax/permit data mining; student-org and operator intel; registrar and housing-office demand signals.
Priority on pre-market and broken-process opportunities (management handoffs, recapitalizations, failed listings).
Underwriting Discipline
DSCR >1.25x on in-place (or stabilized, post-business-plan) NOI; downside case rents flat to +1% with expense inflation stress; exit cap +50–100 bps over entry.
Capex fully loaded (hard + soft + contingencies) with phased lease-turn execution to protect occupancy.
Sensitivity matrices on rents, occupancy, cost overrun, and refi rates; debt sizing at stressed coverage.
Preference for fixed/hedged debt during capex; no reliance on rent spikes to make the deal pencil.
Value Creation Levers
Unit modernization (kitchens/baths, flooring, lighting), bed/bath optimization, fiber/Wi-Fi, access control, study/cowork spaces, amenity activation (fitness/parcel/coffee).
Professional management transition with revenue ops (yield mgmt, renewals, parent-guarantor strategy, term alignment to academic calendar).
Utility and opex reductions (LEDs, low-flow, vendor re-bids).
Hold / Exit
Refi at stabilization (Year 2–3)—harvest a portion of investor capital while retaining equity; exit Year 4–7 to institutional/aggregator buyers seeking stabilized yield near major universities.
Alignment & Structure
Tiered vehicles (e.g., 8% / 10% / 12% preferred targets with equity participation) matched to project risk, duration, and refinancing plans.
Sponsor co-invest alongside LPs; waterfalls aligned to net performance post-fees and capex.
Onboarding & Compliance
Digital subscription workflow; KYC/AML; accreditation checks; IRA/qualified custodian coordination available.
Closing memos summarize business plan, budgets, debt terms, and key risk factors.
Reporting & Cadence
Quarterly reports with financials (P&L, balance sheet, capital account statements), leasing metrics (preleasing %, rent per bed, concessions), capex progress, debt stats (coverage, covenants), and photos.
Investor portal access to docs and distributions; ad-hoc updates for milestones (acquisition, major capex, refinance, exit).
Framework aligned with private-markets reporting norms to ensure clarity and comparability for LPs.
Distributions & Liquidity
Preferred return accrues and pays from operating cash when prudent.
Refi event targets partial return of capital.
Capital returned in full at asset disposition per waterfall.
KPIs We Manage To
Effective rent/bed
Occupancy and preleasing velocity
Net renewal rate
Net renewal rate
DSCR
Capex burn vs. budget
NOI margin
Refi readiness (stabilized DSCR and LTV)
Exit spread to prevailing cap rates
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