Background

  • A 618-unit garden style apartment community, built between 1986 and 1989

  • Located 1.25 miles from the University of Illinois at Urbana-Champaign

  • Historically operated as a conventional apartment property that catered to students

  • Adjacent to the property is a 52-unit self-storage center and additional vacant land zoned for development of 44 multifamily dwelling units

Approach

  • Proposed a full amenity package geared toward students, including development of common area lounges

  • Marketing efforts geared almost exclusively toward regional and national student housing operators

  • Potential investors were offered alternative scenarios to drive value and income, that included fully-furnishing the units

Results

  • Bid process, resulted in receipt of eight qualified offers with institutional equity partners

  • Winning bid, and subsequently final sale price was $33.9 million, or $55,000 per unit. This represented a cap rate of 5.95%.