Case Studies: University Lofts



University  Lofts,  University  of  West  Georgia, Carrollton, Georgia

university-lofts

The Opportunity

  • University Lofts is a 45 unit (180 bed) student housing community that is ideally situated on the doorstep of the University of West Georgia campus.
  • University Lofts was foreclosed upon by the First Georgia Banking Company in 2010. The property was acquired by Student Quarters in October 2013.
  • Our Partners: State Bank & Trust

Our Performance

In keeping with our strategic objective to optimize the value to our assets, Student Quarters launched a package of customized initiatives that were designed to enhance University Lofts’ appearance and residential experience.  These included:

  • Capital enhancements, such as painting the building’s exterior, installing new toilets and shower heads, improving the quality and efficiency of interior and exterior lighting.  Improving the pool amenity was a major focus and initiatives included expanding the deck, installing grills, and purchasing new furniture.  The community’s landscaping was also significantly improved.
  • A dedicated, offsite leasing office was established and aggressive marketing, branding, and leasing campaigns were designed to raise awareness of the new management and improvements to the asset.

The Bottom Line

University Lofts was purchased for $4.3MM (total capitalization). The projected average rental rate is $392 per bed and a per bed exit price of $28,900 (8% cap rate). The deal level IRR is projected at 31.9% with a 2.14 deal level multiple.  We expect the residential experience of our residents and the SQ brand integrity to enjoy strong returns as we enter our first full academic cycle this Fall.