Case Studies: Valdosta State University

Valdosta State University, Valdosta, Georgia


The Opportunity

  • This acquisition of five choice-­located, underpriced, boutique properties represents a portfolio that consists of 392 units (923 beds). These specific properties each met the strategic, value-­added criteria for Student Quarters.
  • Student Quarters acquired the properties in October 2013.
  • Our Partners: LaSalle Investment Management & Bank of America

Our Performance

Immediately after closing, Student Quarters accomplished the following:

  • Installed its property management partner (Ambling) and launched aggressive marketing, branding, and leasing campaigns to raise awareness of the new management and improvements to the products’ residential experience.
  • Concurrent initiatives were initiated to implement a “best-­in-­class” property management program, renovate a centralized leasing facility, and pursue select capital initiatives to improve sustainability, increase product marketability, and bolster NOI.

The Bottom Line

The total investment of $39.8 MM was funded with $13.6 MM in equity and $26.2 MM of debt financing. Student Quarters projects an approximate deal level IRR of 31.71% for the blended portfolio (assumes a five year hold and 7% exit cap rate). Although relatively in its infancy, the VSU portfolio has been wildly embraced by students, their parents, and the campus community. Surveys administered to existing residents show significant increases in satisfaction in only the first few months of operation. 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.