STUDENT HOUSING YEAR-END REPORT - FourPoint Investments
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2
STUDENT HOUSING
0 YEAR-END
1 REPORT
9
Copyright Notice
This presentation is protected by U.S. and
International copyright laws. Reproduction
and distribution of the presentation without
written permission of the sponsor is
prohibited.
©2020 FourPoint Investment Sales Partners
Chris Epp Chris Bancroft Meredith McGrath
Direct – 512-649-3400 Direct – 512-649-2400 Direct – 512-649-4100
Mobile – 214-448-3285 Mobile – 512-705-0212 Mobile – 713-737-5430
cepp@fourpointinv.com cbancroft@fourpointinv.com mmcgrath@fourpointinv.com
!
Craig Miller Matthew Chase Address
Direct – 512-649-3020 Direct – 512-649-2386 1515 S. Capital of Texas Hwy, Ste. 405
Mobile – 325-423-0244 Mobile – 214-215-6232 Austin, Texas 78746
cmiller@fourpointinv.com mchase@fourpointinv.com Main – 512-649-7300
Fax – 512-649-8300
Cover Photo
Property: Rise at Riverfront Crossings
Developer: CA Ventures
Credits: Graphic Design: Naomi Bludworth; Analytical: Craig Miller, Matthew University: University of Iowa
Chase, Meredith McGrath, Holden Penn; Editorial: Sarah Foronda Photo: LCP 360
Greetings from FourPoint Investment Sales Partners, and thank
you for taking time to read our 2019 Student Housing Year-End
Report. As FourPoint continues to grow and evolve, we have
a lot to celebrate!
• Our legacy as the #1 ranked privately-owned investment
sales platform focused on the national student housing
industry.
• Our rapidly expanding capital markets platform.
• Our record of consistently executing over $1 billion in sales,
year after year.
We founded FourPoint with the intent to give you the best of
both worlds: big-firm experience and scale, with the kind of
personalized, hands-on attention that only a boutique firm
like ours can offer. This approach allows us an unparalleled
perspective into future trends on both a micro and macro level.
Our annual Student Housing Year-End Report is by far the most
comprehensive aggregation of data across the industry and
is widely cited and relied upon for its exhaustive content and
accuracy.
On behalf of FourPoint Investment Sales Partners, we would like
to thank all of our clients, buyers, friends, and colleagues for
your contributions to this report. We hope you find the enclosed
information valuable and informative in your course of business.
We are proud to present our 2019 Student Housing Year-End
Report, and we invite you to contact us to discuss.
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 3
2019 YEAR- END OVERVIEW
Sales Volume Debt Overview
Total transaction volume in 2019 was $6.17B which marked In 2019, agency lending origination volume made up 71%
a 40% decrease from the record-setting volume of the prior of the total originations in student housing - $4.4B of the
three years. This year’s significant decrease is attributed to $6.17B total. As the GSE financing options remain attractive,
one factor – the lack of meaningful portfolio transaction vol- CMBS student housing volume continues to decrease. CMBS
ume. In 2019 there were only four portfolio transactions to- originations comprised only 3% of the 2019 originations, with
taling $780M, versus 2016-2018 when an average of $4.65B Life Companies, Banks, and Debt Funds making up the balance
in portfolio sales were recorded each year. of other lending sources.
Cap Rates Development Activity
For the sixth consecutive year the average cap rate for student In 2019 and 2020, 189 new properties totaling in excess of
housing transactions has compressed, hitting a new record low 94,000 beds will be delivered in student markets across the
of 5.58%. This continued compression further demonstrates United States. Despite rising construction costs, interest rate
that student housing has reached a wide level of acceptance volatility, and the oversupply of some of the most well-known
in the investment community. Once considered a much riskier college markets, the development activity remains strong.
asset class than conventional multifamily, the most recent Developments favoring high-density, pedestrian to campus
data illustrates the spread between student housing and locations, continue to be the trend seen among the majority of
conventional multifamily cap rates has reached an all-time new deliveries over the past year. Barring any major changes
low. to the macroeconomic environment, development activity is
expected to remain consistent with the levels seen over the
Current Buyer and Seller Profiles past three years.
Foreign capital investment in student housing development
reemerged in 2019. Operator/Fund Joint Venture buyers
dominated the total transactions in 2019, purchasing 34%,
followed closely by Foreign Capital buyers at 31%. Developers
dominated the seller profile in 2019, accounting for 53% of the
total sales. Operator/Fund Joint Ventures accounted for the
second largest amount of sales at 21%.
Disclaimer:
The information in this report has been derived from sources deemed reliable. However, being subject to errors, omissions, and changes in data, no warranty is made as to its accuracy. Fur-
ther, no warranties or representation shall be made by FourPoint Investment Sales Partners and/or its agents, representatives, or affiliates regarding oral statements that have been made
in the discussion of the above report. This presentation, prepared by FourPoint, was distributed to the recipient under the assumption that s/he is a sophisticated real estate professional, and
s/he should not make investment decisions based on this report. This publication does not render legal, accounting, appraisal, counseling, investment, or other professional advice. Should
such services or other expert assistance be needed, it is recommended that the services of a competent person or firm, having access to the details of the situation, be employed. This report
shall not be reproduced or quoted without express written approval from FourPoint principals.
CONTENTS
2019 Student Housing Transactions 05 Student Housing Debt Overview 22
Student Housing Pricing Metrics 12 Student Housing Development Pipeline 25
Student Housing Cap Rate Analysis 15 Student Housing Supply and Demand Analysis 30
Student Housing Buyers & Sellers 19 FourPoint Investment Sales Partners 34
4 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.
Property: 191 College
Developer: American Campus Communities
University: Auburn University
Photo: Images by Johnny Stevens
“ GLOBAL INVESTOR INTEREST IN THE STUDENT HOUSING SECTOR REMAINS
ROBUST with leading institutional groups actively investing in our space.
While 2019 saw a decrease in transaction volume, this does not indicate a
waning interest in our industry, as evidenced by the further compression of
cap rates across the sector. The decrease is reflective of a lack of available
product due to the changing investor profile as institutional investors
2019 Student
Housing
Transactions
typically have longer hold periods, are investing through portfolio or platform
recapitalizations, or investing in build-to-core programs. As such, traditional
merchant developers are not selling their developments upon stabilization
”
but holding them longer with institutional capital partners. We expect to see
continued strong interest to invest in student housing in 2020 and beyond.
WILLIAM TALBOT
Chief Investment Officer
American Campus Communities (NYSE: ACC)
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 5
2019 REGIONAL STUDENT HOUSING TRANSACTIONS
16
6 25 23
22 56
United States Total
CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE
A 63 $295,783 $104,222 $252 5.39%
B 54 $170,868 $60,686 $156 5.81%
C 31 $128,411 $69,773 $153 5.67% The numbers in the map above represent the amount of 2019 transactions over $5M in each region of the
United States. Portfolio transactions greater than $100M are not included in this data set. Details for portfolio
TOTAL/AVG 148 $212,073 $80,850 $196 5.58% transactions can be found on page 9 of this report.
Pacific Coast Region Midwest Region
Total Transactions: 16 Total Properties: 16 Total Transactions: 25 Total Properties*: 29
CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE
A 6 $257,032 $118,996 $308 5.14% A 11 $277,758 $103,514 $241 5.09%
B 3 $280,288 $92,953 $255 4.63% B 10 $136,360 $47,038 $109 6.65%
C 7 $210,618 $109,142 $235 5.07% C 4 $79,251 $46,973 $98 6.53%
Southeast Region *Four-Property Portfolio in Champaign, IL counted as one transaction. Two-property Portfolio in Ann
Arbor, MI counted as one transaction.
Total Transactions: 56 Total Properties*: 64
Mountain West Region
CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE Total Transactions: 6 Total Properties: 6
A 23 $271,387 $100,551 $215 5.50%
CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE
B 25 $130,369 $47,128 $117 5.57%
A 3 $279,904 $75,145 $183 5.33%
C 8 $89,224 $36,352 $85 7.15%
B 2 $162,935 $49,027 $144 5.75%
*Three-Property Portfolio in Raleigh, NC counted as one transaction. Two-Property Portfolio in Clemson
counted as one transaction. Two-Property Portfolio in Tuscaloosa counted as one transaction. Two- C 1 $149,237 $97,997 $182 5.55%
Property Portfolio in Raleigh counted as one transaction. Two-Property Portfolio in Charlotte counted
as one transaction. Two-Property Portfolio in Tallahassee counted as one transaction. Two-Property
Portfolio in Tallahassee counted as one transaction.
Southwest Region Northeast Region
Total Transactions: 22 Total Properties*: 23 Total Transactions: 23 Total Properties*: 27
CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE CLASS # AVG$/UNIT AVG$/BED AVG$/SF AVG CAP RATE
A 10 $335,475 $121,574 $295 5.52% A 10 $306,932 $124,270 $315 5.45%
B 7 $174,206 $58,667 $160 5.86% B 7 $312,866 $145,207 $462 5.38%
C 5 $115,656 $77,351 $168 6.08% C 6 $143,748 $77,340 $165 4.96%
*Two-Property portfolio in Austin, TX counted as one transaction. *Four-Property Portfolio in State College, PA counted as one transaction. Two-Property Portfolio in New-
ark, DE counted as one transaction. Class B averages inflated due to two Manhattan transactions.
6 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.
2019 INDIVIDUAL STUDENT HOUSING TRANSACTIONS
164
165
123
122
84
91 81
68 59
58 69 90 119 31
118
116117
85 120121 30
88 89 86 87 32 33
34
17 128-132
66-68 124
73
160 69 7172
16 25 29 114 70 82 83
60-63 161
64 65 162
1819 7475 92 163
20 28 93 77 76
115 78 104-107 97
141 108-113
23
24 143 140 98-101
21 22 87 103
108102
108
142 134-137
2 138139
9 108
26 27 153
55 52
95 96 53 54 133
11-15 3-6
3-7
1 56
80
159 94 57
151 152 42-44
38-50
With over $6.17B in total sales volume 144-150 79 36 37
156-158
($5.4B of individual transactions and $780M 154 155
of portfolio transactions), 2019 was the 51
fourth most active sales year in the history 35
of the student housing industry.
2019 Individual Student Housing Transaction Totals
148 TRANSACTIONS CLOSED
24,543 UNITS SOLD
65,336 BEDS SOLD
# PROPERTY CITY STATE BEDS # PROPERTY CITY STATE BEDS
1 The Connection at Auburn Auburn AL 900 23 Chateau Sera and Tropicana Los Angeles CA 64
2 Huntsville Place Huntsville AL 336 24 Highland Parc Riverside CA n/a
3 The Preserve at Tuscaloosa - FKA Parker 301 Tuscaloosa AL 680 25 The Crossings Sacramento CA 750
4 My House on the 50 Tuscaloosa AL 161 26 Fifty Twenty-Five San Diego CA 942
5 My House on Caplewood Tuscaloosa AL 150 27 Paseo Place San Diego CA 120
6 The Grand at Rum Creek Tuscaloosa AL 768 28 Lion Village Colorado Springs CO 506
7 Landmark Apartments Tuscaloosa AL 150 29 FPA6 Ram Portfolio Fort Collins CO 699
8 Cottages on Hollywood Fayetteville AR 652 30 Cambridge/ Oxford Apartments New Haven CT 147
9 MarQ Tempe AZ 263 31 Willington Oaks Willington CT 192
10 Sterling 920 Terrace Tempe AZ 775 32 The Retreat at Newark Newark DE 597
11 Aspire Tucson Tucson AZ 540 33 Park Place Newark DE n/a
12 Wildcat Canyon Village Tucson AZ 128 34 Studio Green Apartments Newark DE n/a
13 INDI Tucson Tucson AZ 247 35 University Square Boca Raton FL 128
14 University Lofts Tucson AZ 39 36 Point West Apartments Gainesville FL n/a
15 Sierra Pointe Apartments Tuscon AZ 137 37 Cabana Beach - Gainesville Gainesville FL 1,488
16 Hillside Residence Hall Berkeley CA 72 38 The Social Row - FKA The Savannahs Student Housing Tallahassee FL 177
17 Gateway Apartments Chico CA 158 39 Elevate on Cascade/Cityview Tallahassee FL 216
18 Copper Beech Fresno Clovis CA 506 40 The Flex at Stadium Centre Tallahassee FL 340
19 Campus Edge Fresno CA 416 41 The Assemblage on Gaines Tallahassee FL 340
20 The Victor Apartments Fresno CA 416 42 Catalyst Tallahassee FL 402
21 Alvista Long Beach Long Beach CA 439 43 Hayden Commons Tallahassee FL 64
22 The Wilcox Collection Los Angeles CA n/a 44 The Social 1600 Tallahassee FL 516
(Individual Transactions List Continued on Next Page)
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 7
2019 INDIVIDUAL STUDENT HOUSING TRANSACTIONS (CONT.)
# PROPERTY CITY STATE BEDS # PROPERTY CITY STATE BEDS
45 University Courtyard Apartments Tallahassee FL 384 106 Collegiate Commons Greensboro NC 324
46 Bainbridge Place Apartments Tallahassee FL 164 107 Sebastian Courtyard & Village (2 Properties) Greensboro NC 648
47 Harbin Terrace Tallahassee FL n/a 108 Signature 1505 Raleigh NC 525
48 College Club Townhomes Tallahassee FL 544 109 Logan & Chamberlain II Raleigh NC 113
49 Summit at Railroad Square Tallahassee FL 135 110 Logan & Chamberlain I Raleigh NC 188
50 Summit at All Saints Tallahassee FL 100 111 University Village at 2505 Raleigh NC 288
51 4050 Lofts Tampa FL 722 112 Campus West at Tryon Raleigh NC 162
52 Theory West Midtown Atlanta GA 525 113 The College Inn Raleigh NC 440
53 University Lofts Carrollton GA 45 114 Academy Lincoln Lincoln NE 632
54 Campus Walk Apartment Homes Carrollton GA 204 115 Rebel Place Las Vegas NV 480
55 SOVA Marietta GA 816 116 Twin River Commons Binghamton NY 371
56 The Hue Savannah GA 446 117 20 Hawley Binghamton NY 290
57 Blanton Common Valdosta GA 860 118 Monarch 716 Buffalo NY 592
58 Green Leaf River Edge Boise ID 622 119 Auden Ithaca (fka Gun Hill Residences) Ithaca NY 273
59 Park Village (fka The 208 Apartments) Boise ID 188 120 55 John Street New York NY 499
60 908 S. First Champaign IL 96 121 1760 Third Avenue New York NY 1,107
61 501 S. Sixth Champaign IL 104 122 The Union Student Living Corvallis OR 222
62 307 E. Daniel Champaign IL 40 123 ArtHouse Portland OR 94
63 1008 S. Fourth Champaign IL 158 124 Lehigh University Portfolio (44 properties) Bethlehem PA 219
64 University Village Charleston IL 391 125 Apartments at 1220 Philadelphia PA 414
65 Campus Pointe Charleston IL 336 126 Spruce Hill Philadelphia PA 428
66 Automatic Lofts Chicago IL 482 127 The Greenery Apartments Philadelphia PA 105
67 30 East Chicago IL 386 128 The Diplomat State College PA 72
68 Tailor Lofts Chicago IL 441 129 Garner Court State College PA 76
69 Lincoln Park Townhomes Normal IL 156 130 Alexander Court State College PA 179
70 The Place at 117 Savoy IL 588 131 Beaver Hill State College PA 654
71 The Annex on 10th Indianapolis IN 223 132 Cedarbrook State College PA 271
72 The College Crossing at National Indianapolis IN 168 133 My House on Meeting Charleston SC 156
73 West Lafayette Portfolio West Lafayette IN n/a 134 Tiger Towne Village Clemson SC 282
74 The Connection at Lawrence Lawrence KS 888 135 Tiger Towne Farmhouses Clemson SC 231
75 The Rockland Lawrence KS 647 136 Campus View Clemson SC 278
76 Fields of Bluegrass Lexington KY 528 137 The Collective at Clemson (fka Aspen Heights Clemson) Clemson SC 598
77 Trifecta Apartments (fka The Arch Apartments) Louisville KY 604 138 The Southern at 1051 Columbia SC 1,002
78 Station 74 Murray KY 268 139 Stadium Suites Columbia SC 924
79 University Place Lafayette LA 342 140 The Edge (Campus Edge) Cookeville TN 288
80 University Crossing Ruston LA 552 141 The Social at Grand Forest (2 Properties) Knoxville TN 334
81 1047 Commonwealth Boston MA 380 142 Nine at Memphis Memphis TN 385
82 Alloy by Alta Apartments College Park MD 399 143 East Main Quarters Murfreesboro TN 252
83 Landmark College Park College Park MD 829 144 Villas on 26th Austin TX 182
84 Bayside Village Portland ME 402 145 MUZE Austin TX 450
85 Evolve at Allendale Allendale MI 580 146 21 Pearl Austin TX 251
86 Zaragon Place Ann Arbor MI 248 147 Rio West Austin TX 388
87 Zaragon West Ann Arbor MI 198 148 University Estates Austin TX 1,548
88 The Paddock Kalamazoo MI 784 149 University Village Austin TX 1,152
89 Western Pines Kalamazoo MI 200 150 Skyloft Austin TX 674
90 Lofts @ 1633 Mankato MN 69 151 University Trails College Station TX 828
91 University Village Minneapolis MN 425 152 The Lofts at Wolf Pen Creek College Station TX 567
92 Century Towers Residences Kansas City MO 307 153 Thrive Lubbock (fka Gateway at Lubbock) Lubbock TX 744
93 Everly on the Loop St. Louis MO 428 154 The Luxx San Antonio TX 694
94 Reserve at Long Point Hattiesburg MS 420 155 High View Place San Antonio TX 624
95 The Social Campus Starkville MS 1,344 156 The Lyndon San Marcos TX 515
96 Lakeside Starkville MS 504 157 The Metropolitan San Marcos TX 171
97 The Warehouse (Rosemary) Apartments Chapel Hill NC 215 158 Riverside Ranch San Marcos TX 372
98 Willows at The University Charlotte NC n/a 159 Mustang Ranch Stephenville TX 501
99 Haven 49 Charlotte NC 887 160 Promenade Place Orem UT 429
100 The Union (fka Campus Pointe) Charlotte NC 183 161 The Rixey Arlington VA 356
101 The Mill (fka The Flats at Mallard Creek) Charlotte NC 451 162 Foxhill Townhomes Harrisonburg VA 404
102 Greenhill Apartments at Columbus Columbus NC 278 163 The Towers on Franklin Richmond VA 357
103 River Walk Cullowhee NC 490 164 Sky Vue Bellingham WA 120
104 Block 43 (fka Spring Place) Greensboro NC 484 165 Mountain View Hall Everett WA 120
105 University Park Greensboro NC 214
8 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.
2019 PORTFOLIO STUDENT HOUSING TRANSACTIONS
3 4
5
1-6 1
4
2 1
3
3
Capstone / Kayne Anderson to Scion Group 1 2
6
Equity Residential to Dinerstein/Harrison Street
908 Development Group / Scannell Properties to Landmark Properties 2
Various Sellers to Vie Management
2019 Portfolio Student Housing Transaction Totals
4 PORTFOLIOS
CLOSED
19 PROPERTIES CLOSED
2,433 UNITS SOLD
6,609 BEDS SOLD
For the purpose of this report, transactions that are both greater than $100M and three or more properties are considered portfolios.
Seller: Capstone/Kayne Anderson (4 Properties | 873 Units | 3,150 Beds) Seller: 908 Development Group/Scannell Properties (3 Properties | 311 Units | 1,130 Beds)
Buyer: Scion Group/Hana Financial Group Buyer: Landmark Properties
# PROPERTY CITY STATE BEDS # PROPERTY CITY STATE BEDS
1 Cottages of Fort Collins Fort Collins CO 888 1 The Nine Rio Austin TX 347
2 Cottages of Lubbock Lubbock TX 847 2 The Nine at West Campus Austin TX 345
3 The Nine at Gainesville Gainesville FL 625 3 The Nine at Tallahassee Tallahassee FL 438
4 Archive Oxford Oxford MS 790
Seller: Various (6 Properties | 912 Units | 1,805 Beds)
Seller: Equity Residential (6 Properties | 337 Units | 524 Beds) Buyer: Vie Management/Safanad
Buyer: The Dinerstein Company/Harrison Street
# PROPERTY CITY STATE BEDS
# PROPERTY CITY STATE BEDS 1 University Downs Tuscaloosa AL 436
1 Sterling Oxford (FKA The Berkleyan) Berkeley CA 107
2 Vie Villas at Boca Raton (FKA University View) Boca Raton FL 165
2 Sterling Jefferson (FKA Renaissance Villas) Berkeley CA 48
3 Hillcrest Oakwood Apartments Big Rapids MI 616
3 Sterling Addison (FKA ARTech) Berkeley CA 39
4 Colonie Apartments Amherst NY 184
4 Sterling University Ave (FKA Touriel) Berkeley CA 56
5 Sterling Haste (FKA Fine Arts) Berkeley CA 117 5 Southgate Apartments State College PA 152
6 Sterling Allston (FKA Gaia) Berkeley CA 157 6 Ella Lofts San Marcos TX 252
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 9
HISTORICAL STUDENT HOUSING TRANSACTIONS
Total transaction volume in 2019 was $6.17B which represented Despite the lack of portfolio transactions, the data for 2019 still
a 40% decrease from the record-setting volume of the prior offers several positive narratives. For example, at $6.17B and
three years. Over the past decade student housing investment 151 transactions, 2019 still ranks as the fourth most active
activity increased at exponential rates each year, so it may year in the history of the student housing industry. In fact, if all
come as a surprise that transaction volume decreased so portfolio transactions are eliminated from the historical data,
dramatically in such a short period of time. But upon careful 2019 is the second most active year on record. Another positive
examination, this year’s significant decrease is attributed to one note is that excluding the singular portfolio transaction, the
factor – the lack of meaningful portfolio transaction volume. In average sized contract for 2019 was a record $36M, indicating
2019 there was only one portfolio transaction totaling $380M, a flight to quality and higher-priced properties. We believe
vs 2016-2018 when an average of $4.65B in portfolio sales the data indicates that the fundamentals of student housing
were recorded each year. investment continued to be healthy through 2019.
For the context of this report, we classify a portfolio transaction In the coming years developers will deliver a near-record
as any arms-length transaction that includes a minimum of number of properties and new entrants continue to seek scale
three properties and an aggregate volume in excess of $150M. by quickly consolidating national portfolios. Student housing
When accounting for a transaction like the 2018 sale and continues to evolve as a respected vehicle for institutional equity
privatization of EdR to Greysar, the numbers in our report within the United States and from across the globe.
exclude any enterprise value (goodwill, technology, etc.) that
is associated with the published transaction amount.
[ Sales Volume ] [ No. of Transactions ]
$10,000,000,000 - - 200
179 - 180
173
$8,000,000,000 - 158 - 160
152
- 140
133
$6,000,000,000 - - 120
- 100
$4,000,000,000 - 81 83 80 - 80
67 64 65
59 - 60
46
$2,000,000,000 - - 40
30
- 20
$0 - -0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Volume Transactions
Portfolio Transactions
Data internally tracked, compiled, and calculated from FourPoint Investment Sales Partners’ proprietary database. The data
only accounts for sales over $5M. Portfolio transactions are accounted for as one transaction.
10 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.Quarterly Transactions
The first half of 2019 accounted for 60% of all 2019 [ Sales Volume ] [ No. of Transactions ]
transactions and was much more active than the
- 50
second half. While the first and second quarter $2,500,000,000 -
shared high transaction volume, their sales volume 44 45
was vastly different. At ~$1.75B, Q1 sales volume $2,000,000,000 - 40 - 40
is almost double that of Q2, which was ~$900M.
The difference is easily identified by noting that six $1,500,000,000 - - 30
(five individual and one portfolio) transactions that
closed in the first quarter were above $90M, while all 23
$1,000,000,000 - - 20
transactions in the second quarter were below $90M.
In contrast, 26 transactions occurred in Q2 that were - 10
$500,000,000 -
less than $15M, while Q1 only had 14 transactions
less than $15M. Following historical trends, Q4
$0 - -0
finished the year with above average sales activity.
Q1 Q2 Q3 Q4
Volume Transactions
Data internally tracked, compiled, and calculated from FourPoint Investment Sales
Partners’ proprietary database. The data only accounts for sales over $5M. Portfolio
transactions are accounted for as one transaction.
Monthly Transactions
February (~$950M) and December (~$650M) were [ Sales Volume ] [ No. of Transactions ]
the two most active months of 2019, and accounted
$1,000,000,000 - - 20
for 26% of 2019 sales volume. Outside of these two
- 18
months, the average monthly sales volume was $875,000,000 -
17
approximately $450M per month. February had five $750,000,000 -
16 16 16 - 16
15
individual transactions, all $90M or higher, while May 14 - 14
$625,000,000 -
recorded the lowest sales volume ($150M) due to a 12 12 - 12
11
number of smaller transactions. $500,000,000 - 10 - 10
8 -8
$375,000,000 -
-6
$250,000,000 - 5
-4
$125,000,000 - -2
$0 - -0
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Volume Transactions
Data internally tracked, compiled, and calculated from FourPoint Investment Sales
Partners’ proprietary database. The data only accounts for sales over $5M. Portfolio
transactions are accounted for as one transaction.
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 11Property: Rise on Chauncey
Developer: CA Ventures
University: Purdue University
Photo: LCP 360
Student Housing
Pricing Metrics “ ATTRACTIVE YIELDS IN REAL ESTATE AS COMPARED TO OTHER ASSET
CLASSES SHOULD CONTINUE TO DRIVE INTEREST AND RECORD-SETTING
PRICING ON A PER UNIT/BED/SF BASIS IN THE STUDENT HOUSING
INDUSTRY. Downward pressure on yields will likely persist given the
historic low interest rate environment and the continued demand from
capital seeking access to the student housing sector, particularly for
investments that possess durable cash flows. However, in addition to
perceived macro supply, an increase in loan delinquencies and lender
”
skepticism in certain markets may impact the depth of the buyer pool
and pricing going forward.
BEN MOHNS
Managing Director
Harrison Street Real Estate Capital
12 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.STUDE NT HO USIN G P RICIN G METRI CS
[Price / Unit / Bed] [Price / SF]
$250,000 - - $200
$225,000 - - $185
$200,000 - - $170
$175,000 - - $155
$150,000 - - $140
$125,000 - - $125
$100,000 - - $110
$75,000 - - $95
$50,000 - - $80
$25,000 - - $65
$0 - - $50
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Price/Unit Price/Bed Price/SF
Data internally tracked, compiled, and calculated from FourPoint Investment Sales Partners’ proprietary database. Pricing indicated in
chart represents stabilized sales. Stabilized sales include all transactions not sold by a lender or receiver.
2019 pricing levels are very similar to the past three
years. Pricing metrics showed a nominal increase on Property: The Nest
Developer: Trinitas
a per unit and per bed basis when compared to 2018, University: University of Kansas
but experienced a healthy jump upward on a per square Photo: William Manning Photography
foot basis, achieving an all-time high at nearly $200/
PSF. The pricing increase on a square foot basis is likely
attributed to developers' continued appetite for higher
density projects in pedestrian locations, opting for more
four, five, or six-bedroom floor plans which often maximize
rent per square foot. The number of assets trading north
of $100,000 per bed continues to be significant, accounting
for about a third of all transactions in 2019.
Despite interest rate volatility throughout the year, cap
rates remained at all-time lows, which continued to drive
pricing near record highs. Aggressive capital remains
active in the industry and helped sustain consistent pricing
levels over the past three years. As developers face rising
construction costs and investors look to maximize returns
by pushing rental rates higher, pricing for 2020 is expected
to continue to increase.
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 13STUDE NT HO USIN G P R ICIN G METRI CS
Class A vs. B vs. C Pricing Total Transaction Volume (%) By Class Type
In order to better distinguish meaningful trends found among
Class A, B and C student housing properties, the 2019 year-
end report has adjusted the qualifying criteria assigned 21%
to each class. This report identifies any property built (or
significantly renovated) in 2011 or later as a Class A asset.
Class B assets are identified as being built (or significantly Class A
43% (2011-2019)
renovated) between 1996 and 2010, while Class C assets are
identified as being built in 1995 or earlier. Class B
(1996-2010)
Class A sales crept above $100,000 per bed in 2019 to Class C
(1995 & Earlier)
$104,222 per bed after falling just shy of that benchmark
in 2018. This represents only the second time that the 36%
average Class A sales price has surpassed the $100,000/
bed threshold. Price per unit for class A sales also increased
relative to 2018, growing over 10% and approaching $300,000/
unit. With new developments carrying a higher bed-to-unit Average Pricing by Class Type
ratio as developers look to maximize unit layout in new high-
density developments, we can expect the trend of increased [Price / Unit / Bed] [Price / SF]
price per unit year-over-year to continue. Regionally, Class
A pricing on a per bed and per unit basis increased in four of $300,000 - - $300
the six regions with the Northeast and Pacific regions being $275,000 - - $275
the two that went the opposite direction. Despite a decline in
$250,000 -
pricing, the Northeast region still held on as the region with - $250
the highest price per bed for Class A assets, falling just below $225,000 -
$125,000 per bed. From a transaction volume perspective, - $225
$200,000 -
the Southeast region accounted for the highest percentage of - $200
$175,000 -
overall Class A transactions for a third year in a row, almost
37%, putting it right in line with both 2017 and 2018. $150,000 - - $175
$125,000 - - $150
As expected, Class B pricing in 2019 sits well below that of
Class A averages. Accounting for 36% of individual trades $100,000 -
- $125
during 2018, Class B pricing on a per bed basis ($60,686/ bed) $75,000 -
represents a 3% increase over the combined Class B pricing - $100
$50,000 -
of 2018. The Northeast region was the only region that had
$25,000 - - $75
Class B pricing surpass $100,000 per bed average as well as
passing the $300,000 per unit pricing. The Northeast region $0 - - $50
price per square foot for Class B properties also shot up to Class A Class B Class C
$462 PSF. The underlying reason that the Northeast region (2011-2019) (1996-2010) (1995 & Earlier)
saw such strong performance from the Class B category was Price/Unit Price/Bed Price/SF
due to two transactions that were high-density and urban in
nature and accounted for over 75% of the sales volume for Data internally tracked, compiled, and calculated from FourPoint Investment Sales Partners’
proprietary database. Pricing indicated above represents stabilized sales. Stabilized sales
class B assets in this region. include all transactions not sold by a lender or receiver. Class A designation is properties built
from 2011 through 2019, Class B designation is properties built from 1996 through 2010, Class
C designation is properties built any time through 1995.
Class C pricing, representing about 20% of transaction volume
in 2019, averaged almost $70,000 per bed, a 15% increase
over Class B per bed pricing. However, when comparing price more heavily focused on one and two bedrooms. Almost all
per unit, Class C transactions were 25% lower than Class properties built before 1995 were not purpose-built student
B assets on per unit pricing. This is primarily explained by housing, and rather operate as student housing by default given
older properties having less density, and a unit mix that is their location to nearby universities.
14 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.Property: Hub on Campus West Lafayette
Developer: Core Spaces
University: Purdue University
Photo: Kevin Kaminiski Photography
“ Prior to 2014 the student housing industry primarily consisted of a handful
of niche investors. Over the last five years foreign capital and large domestic
investors made significant allocations to the space, and now the largest
equity funds in the world have an allocation for student housing. THE
COMBINATION OF INCREASED INVESTOR DEMAND AND LOW INTEREST
RATES HAS DRAMATICALLY INCREASED LIQUIDITY, AND CAP RATES HAVE
Student Housing
Cap Rate Analysis
COMPRESSED. There is a flight to quality at this phase of the cycle and in
2020 I predict cap rates for Tier One product will continue to hold steady,
”
if not compress slightly. Assets in tertiary markets are harder to sell,
although at the right price, foreign capital can solve for their higher-yield
return requirements.
JOHN PREISS
Chief Investment Officer
The Preiss Company
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 15STUDE NT HO USIN G CAP R ATES
For the sixth consecutive year the average cap rate for student
housing transactions compressed, hitting a new record low of Property: The Ruckus 2.0
5.58%. This represents a 23-basis point compression from the Developer: Lincoln Ventures
University: The University of Texas at Austin
previous year, and almost a full percent lower than the average Photo: Twist Tours
cap rate in 2014 (6.51%). This continued compression further
demonstrates that student housing has reached a wide level of
acceptance in the investment community. Considered a much
riskier asset class than conventional multifamily, the most
recent data illustrates the spread between student housing
and conventional multifamily cap rates has narrowed to record
levels. Although market dependent, there are now examples
of student housing assets trading at cap rates below that of
conventional multifamily. Despite the potential for interest
rate volatility and other macroeconomic factors, we expect cap
rates to generally remain near the record lows established
in 2019.
5.58% AVERAGE CAP RATE
[Cap Rate] [10-Year Treasury]
9.0% - - 3.0%
7.5% - - 2.5%
6.0% - - 2.0%
4.5% - - 1.5%
3.0% - - 1.0%
1.5% - - 0.5%
0.0% - - 0.0%
01/2/2019 02/21/2019 05/19/2019 07/19/2019 09/19/2020 11/19/2019 12/30/2019
Cap Rate 10-Year Treasury
Linear Cap Rate Linear 10-Year Treasury
Data internally tracked, compiled, and calculated from FourPoint Investment Sales Partners’ proprietary database. Graph includes all stabilized sales with cap rate data avail-
able but does not include portfolio transactions due to the lack of asset-specific cap rate data available. All data deemed reliable; however, no representation is being made to
the accuracy thereof.
16 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.5.39% AVERAGE CLASS A CAP RATE
Class A Cap Rates
[Cap Rate]
The average Class A cap rate dropped in 2019 to 5.39% 8.00% -
which is 18 basis lower than the previous year. This
established a new record low which was previously 7.00% -
seen in 2017. Of the Class A trades that occurred in
2019, almost 70% were mid- rise or high-rise product 6.00% -
with an average distance to campus of less than 0.60
miles. Among the Class A sales, only 40% were located
5.00% -
at universities designated as a “power 5” conference
but on average commanded a cap rate 30 basis points
4.00% -
lower than those at non “power 5” universities. As
developers continue to build predominately high-
density projects in close proximity to campus, Class 3.00% -
A cap rates on a forward-looking basis are expected
to remain at historic lows. 2.00% -
01/15/19 3/28/19 6/24/19 11/15/19 12/19/19
[Date]
Cap Rate Linear Cap Rate
Data internally tracked, compiled, and calculated from FourPoint Investments Sales
Partners’ proprietary database. Graph includes all properties sold in 2019 built after
January 1, 2011 with cap rate data available but does not include portfolio transactions due
to the lack of asset-specific cap rate data available. All data deemed reliable; however, no
representation is being made to the accuracy thereof.
Class B Cap Rates 5.81% AVERAGE CLASS B CAP RATE
Accounting for about a third of the transactions in [Cap Rate]
2019, Class B properties had an average cap rate of 10.00% -
5.81%. As expected, a healthy spread of 42 basis points
exists between Class A and Class B cap rates. This
8.00% -
spread is best represented by the location and product
type built during generation-one student housing (late
90’s to mid 2000’s). Seventy-two percent of the Class 6.00% -
B transactions in 2019 were garden-style trades, with
an average distance to campus at just under one mile.
4.00% -
While institutions and other low cost-of-capital buyers
continue to chase low-risk core product, a large group
of opportunistic buyers maintain a strict focus on more 2.00% -
value-oriented acquisitions. Although these buyers
may be priced out of the Class A environment, they
tend to enjoy a much healthier yield provided by assets 0.00% -
01/16/19 3/27/19 6/19/19 11/19/19 12/30/19
in this profile. With high demand for Class B product
[Date]
and increased competition to find strong investment
Cap Rate Linear Cap Rate
opportunities in tier one markets, cap rates for Class
B product are likely to remain at historic lows in 2020. Data internally tracked, compiled, and calculated from FourPoint Investments Sales
Partners’ proprietary database. Graph includes all properties sold in 2019 built after
January 1, 1996 and before January 1, 2011 with cap rate data available but does not
include portfolio transactions due to the lack of asset-specific cap rate data available. All
data deemed reliable; however, no representation is being made to the accuracy thereof.
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 175.67% AVERAGE CLASS C CAP RATE
Class C Cap Rates
[Cap Rate]
Only 31 transactions in 2019 qualified as Class C 9.00% -
assets (built before 1996). Working with a smaller
data set led to some interesting conclusions, namely 8.00% -
an average Class C cap rate of 5.67% which is 14 basis
points lower than the average Class B cap rate in
7.00% -
2019. Class C cap rates traded lower than Class B cap
rates, despite Class C product being much older and
6.00% -
typically in need of more capital improvements than
Class B product. Additionally, the average distance
to campus for Class C properties was less than 0.50 5.00% -
miles. This illustrates the investments community’s
appetite, and willingness to pay a premium for the 4.00% -
best possible location. Additionally, because Class C
product generally has more upside from a value-add 3.00% -
perspective, investors are willing to forego stabilized
cap rates day-one in return for higher yields throughout
2.00% -
their investment period. 01/02/19 3/28/19 6/27/18 11/19/20 12/19/19
[Date]
Cap Rate Linear Cap Rate
Data internally tracked, compiled, and calculated from FourPoint Investments Sales
Partners’ proprietary database. Graph includes all properties sold in 2019 built before
January 1, 1996 with cap rate data available but does not include portfolio transactions due
to the lack of asset-specific cap rate data available. All data deemed reliable; however, no
representation is being made to the accuracy thereof.
Property: Identity Miami
Developer: CA Ventures
University: Florida International University
Photo: LCP 360Property: Hub on Campus Tucson Speedway
Developer: Core Spaces
University: University of Arizona
Photo: Kevin Kaminiski Photography
“ A cornerstone of the student housing sector has always been the selective
and disciplined buyer of individual assets. With time and experience
those same buyers typically progress to transacting on larger portfolio
acquisitions. IN 2019 THERE WAS AN INFLOW OF CAPITAL FROM NEW
ENTRANTS, PARTICULARLY THE SOVEREIGN INVESTMENT COMMUNITY,
AND IN 2020 WE EXPECT TO SEE THE RETURN OF LARGE PORTFOLIO
Student Housing
Buyers & Sellers
ACQUISITIONS BY THESE GROUPS. Timberline Real Estate Ventures is
cautiously optimistic that this will boost overall transaction volume in the
sector, subject to external impacts from global macroeconomic events.
ANDREW STARK
Principal
Timeberline Real Estate Ventures
© 2020 FourPoint Investment Sales Partners. All Rights Reserved.
”
FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 19BUYER TRENDS
5% 2%
Foreign capital investment in student housing reemerged in
2019. The surge in foreign investment was fueled by a slew 17%
of acquisitions by groups from China, the United Kingdom, Developer
31%
South Korea and the Gulf states. Together, Operator Fund Foreign Capital
Joint Ventures (34%) and Foreign Capital (31%) dominated
2019
Operator Fund / JV
4%
the buyer pool in 2019. These groups are often structured Private
similarly; however, if the equity is originated in a non- REIT
8%
US based entity, the transaction is accounted for in the
Syndicator/DST/TIC
Foreign Capital bucket. The third most active buyer type
University
was Syndicator / DST / TIC on all purple highlights, which
made up 17% of the 2019 buyer pool. This is in line with
34%
2018 (19%), and we expect the trend to continue and this
buyer type will account for approximately 20% of the buyer
2% 1%
pool each year. 8%
Family Office
19%
Foreign Capital
Institution
1% Operator Fund / JV
6%
2018 Private
REIT
40%
Syndicator/DST/TIC
University
100% -
23%
90% -
80% -
70% -
60% -
50% -
40% -
30% -
20% -
10% -
0% -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Private University
REIT Operator Fund / JV
Syndicator/DST/TIC Foreign Capital
Institution Developer
Property: Sterling Heights
Data internally tracked, compiled, and calculated from FourPoint Investment Sales Partners’ Developer: The Dinerstein Companies
proprietary database. Charts based on $6.17B of individual and portfolio transaction sales volume. University: University of Texas at San Antonio
Photo: Hugh Hargrave Photography
20 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.SELLER TRENDS
4%
7%
Developers dominated the seller profile in 2019, accounting 12% Developer
for a whopping 53% of the total sales. This is a change from Foreign Capital
last year when REIT sales accounted for over 40% of the
2019
Lender/Receiver
transactions; due mainly to the $3.2B privatization of EdR
53% Operator Fund / JV
to Greystar. No portfolios of the same scale traded in 2019;
Private
therefore, it makes sense that developers, who were the
second biggest seller in 2018, regained the mantle as the 21% TIC/DST/Syndicator
dominant seller in 2019. In each of the past five years nearly REIT
50,000 beds have been delivered - many from developers 1% 3%
who do not plan to hold long term. In 2019, Operator/Fund
Joint Ventures made up the next largest seller category at 0.2% 1%
21%. The remaining five types of sellers combined made
Developer
up 26% of the disposition market. 24%
Foreign Capital
Institution
2018
Lender/Receiver
41% 1%
2% Operator / Fund JV
0.2%
Private/Syndicator/TIC
9%
REIT
University
100% -
22%
90% -
80% -
70% -
60% -
50% -
40% -
30% -
20% -
10% -
0% -
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Private/Syndicator/TIC Lender/Reciever
Operator/Fund JV Developer
REIT University
Property: Hub on Campus West Lafayette
Institution Foreign Capital Developer: Core Spaces
University: Purdue University
Photo: Kevin Kaminiski Photography
Data internally tracked, compiled, and calculated from FourPoint Investment Sales
Partners’ proprietary database. Charts based on $6.17B of individual and portfolio
transaction sales volume.
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 21Property: The Standard at Flagstaff
Developer: Landmark Properties
University: Northern Arizona University
Photo: Kyle Zirkus Photography
Student Housing
Debt Overview “ It was great news to all of us when the FHFA announced the new volume
caps for each agency, allowing them to originate up to $80MM in 2020.
While their focus in 2020 is on “Mission-driven”/affordable housing, the
agencies will still be a significant part of the student housing market
this year. I do not expect Fannie & Freddie to meet the $4.4B loan
origination number they achieved last year, but they are still very much
in the market and providing liquidity in both healthy and challenging
submarkets. Going forward in 2020, student housing borrowers should
expect more scrutiny from the agencies on market selectivity as well
as sponsor track record and experience. THE GOOD NEWS IS THAT WE
ARE IN THE LOWEST RATE ENVIRONMENT OF ALL TIME AND THERE HAS
”
NEVER BEEN A BETTER TIME TO LOCK A 10-YEAR FIXED RATE LOAN.
WILL BAKER
Senior Managing Director | Real Estate Finance
Walker & Dunlop
22 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.HISTORIC AL STUDENT HOUSING LOAN VOLUME
The Government Sponsored Enterprises (GSE’s), Freddie announcement allowed loan caps of $100B for both Freddie
Mac and Fannie Mae, play a crucial role in the liquidity and & Fannie multifamily without exclusions for student housing.
stability of the student housing market. Over the past five
years the duo has originated over $20B in student housing With new allocations from the Federal Reserve, the GSE’s
loans and continues to be the most readily available sources continue to offer non-recourse financing for dedicated student
of financing in the sector. housing properties within two-miles of campus or on a
university-owned transportation line. These loans are offered
Despite a decrease in student housing sales volume in 2019, with terms of five to thirty years with fixed and variable rate
GSE debt origination volume remained near all-time highs. options available with a maximum loan- to-value of 80% and
At $4.4B of originations, $2.7 coming from Fannie Mae and a minimum debt service coverage ratio of 1.30x.
$1.7B from Freddie Mac, the GSE’s comprised a dominating
71% of all student housing origination volume in 2019. As agency lending options remain attractive, CMBS student
housing volume continues to decrease. CMBS originations
In Fall 2019, the FHFA announced a revised cap structure on comprise only 3% of the 2019 originations, down from only
all multifamily agency lending and renewed allocations. The 6% in 2018. The balance of originations in 2019 consisted
of Life Companies, Banks, Debt Funds, and other sources.
[Loan Volume]
$4,000,000,000 -
$3,500,000,000 -
$3,000,000,000 -
$2,500,000,000 -
$2,000,000,000 -
$1,500,000,000 -
$1,000,000,000 -
$500,000,000 -
$0 -
2013 2014 2015 2016 2017 2018 2019
Fannie Mae Freddie Mac CMBS
Property: Rise on Chauncey
Developer: CA Ventures
University: Purdue University
Photo: LCP 3602019 Index Data
After steady rate increases to the 10-Year 3.00 %
Treasury since 2015, the Federal Reserve 2.80 %
issued three different rate cuts of 25 basis 2.60 %
points in August, September, and October 2019. 2.40 %
The 10-Year Index began the year near 2.75%
2.20 %
and decreased approximately 100 basis points
2.00 %
over the course of the year. The One-Month
LIBOR mirrored this trend, starting the year 1.80 %
at 2.45% and ending at 1.40%. In 2020, based 1.60 %
on global macroeconomic events, we expect 1.40 %
all indexes to continue to drop to all-time lows.
1.20 %
1.00 %
1/2/19 3/1/19 5/1/19 7/1/19 9/1/19 11/1/19 12/31/19
1-Month LIBOR 10-Year Treasury
Historical Treasury Vs. Cap Rate Trends
Over the past ten years, the 10-Year Treasury 8.00 %
has steadily decreased from an average of
7.00 %
3.22% in 2010, to 2.14% in 2019. As expected,
student housing cap rates have followed this 6.00 %
trend and have dropped from an average of
7.05% in 2010, to an astounding 5.58% in 2019. 5.00 %
4.00 %
3.00 %
2.00 %
1.00 %
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Average Cap Rate 10-Year Treasury Average
Property: The Mark Tucson
Developer: Landmark Properties
University: University of Arizona
Photo: Zach Rolen, Rolen ImageProperty: The Mark Tucson
Developer: Landmark Properties
University: University of Arizona
Photo: Zach Rolen, Rolen Image
“ At Landmark, we carefully analyze the forward looking supply and demand
fundamentals to determine the markets we like. Until recently, we had
been focused almost exclusively on development. Given how replacement
costs have outpaced rents in many markets, though, development doesn’t
always make sense. As such, these are the markets where we’re focused
on acquisitions. WE ALWAYS LOOK TO THE MARKET FIRST, THEN MAKE
Student Housing
Development
Pipeline
”
OUR INVESTMENT DECISION ON LOCATION AND THE SUBMARKET
BARRIERS TO ENTRY.
J. WESLEY ROGERS
President and CEO
Landmark Properties
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 252019 STUDENT HOUSING 2019 was one of the most active development
years in the history of the student housing space
DELIVERIES in terms of the number of properties developed.
This map pinpoints all known developments
delivered in 2019 as reported by Axiometrics
and FourPoint independent research.
51 2829
49
50 27
25 33
15 34 35
16-18 14
2324
43 37 36
1 22 4142 38-40
47 20 6
48 45 3-5 7-10
26 11 21
44
2 13
32
30 31 19 12 7778
79
46 83 87 55
82 76
72
68 69 80 81
70
8485 74 75 54 71
86 93 52 53
88
89-92 62-65
9798 94 95 57-60
73 56
9699
66 67
61
2019 Portfolio Student Housing Delivery Totals
99 PROPERTIES DELIVERED
17,472 UNITS DELIVERED
49,595 BEDS DELIVERED
Pacific Coast Region Midwest Region
# OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED # OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED
7 1,356 3,788 25 4,528 11,119
Mountain States Region Southeast Region
# OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED # OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED
7 1,260 4,289 31 4,843 15,340
Southwest Region Northeast Region
# OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED # OF PROPERTIES DELIVERED # OF UNITS DELIVERED # OF BEDS DELIVERED
17 2,866 8,429 12 2,619 6,630
26 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.2019 STUDENT HOUSING DELIVERIES
# CITY STATE UNITS BEDS # CITY STATE UNITS BEDS
Midwest Region Southeast Region
1 Coralville IA 151 303 52 Auburn AL 126 481
2 Edwardsville IL 162 468 53 Auburn AL 219 858
3 Champaign IL 170 538 54 Tuscaloosa AL 64 114
4 Champaign IL 218 548 55 Fayetteville AR 180 652
5 Urbana IL 126 476 56 Daytona Beach FL 96 376
6 Kokomo IN 75 125 57 Gainesville FL 18 54
7 West Lafayette IN 280 835 58 Gainesville FL 42 114
8 West Lafayette IN 233 608 59 Gainesville FL 48 132
9 West Lafayette IN 250 675 60 Gainesville FL 310 598
10 West Lafayette IN 36 96 61 Miami FL 186 621
11 Lawrence KS 270 784 62 Tallahassee FL 104 438
12 Bowling Green KY 218 381 63 Tallahassee FL 78 340
13 Lexington KY 159 473 64 Tallahassee FL 265 915
14 Ann Arbor MI 58 261 65 Tallahassee FL 149 517
15 Big Rapids MI 120 318 66 Tampa FL 209 755
16 East Lansing MI 273 273 67 Tampa FL 48 120
17 East Lansing MI 146 219 68 Atlanta GA 183 537
18 East Lansing MI 347 585 69 Atlanta GA 221 676
19 Springfield MO 150 348 70 Atlanta GA 237 685
20 Omaha NE 240 360 71 Macon GA 96 306
21 Cincinnati OH 351 1,029 72 Marietta GA 248 816
22 Kent OH 126 384 73 Lafayette LA 191 595
23 Vermillion SD 169 496 74 Starkville MS 250 656
24 Vermillion SD 74 236 75 Starkville MS 300 820
25 Green Bay WI 126 300 76 Greenville NC 192 609
Mountain States Region 77 Raleigh NC 81 188
26 Denver CO 253 919 78 Raleigh NC 42 114
27 Bozeman MT 225 887 79 Raleigh NC 174 658
28 Missoula MT 176 500 80 Charleston SC 74 258
29 Missoula MT 52 208
81 Charleston SC 114 343
30 Las Vegas NV 226 758
82 Seneca SC 298 994
31 Las Vegas NV 215 601
32 St. George UT 113 416 Southwest Region
Northeast Region 83 Flagstaff AZ 192 650
33 Boston MA 207 805 84 Tucson AZ 200 540
34 Buffalo NY 92 302 85 Tucson AZ 55 183
35 Ithaca NY 442 872
86 Tucson AZ 154 595
36 Bethlehem PA 144 428
87 Stillwater OK 201 475
37 Kutztown PA 110 408
38 Philadelphia PA 126 251 88 Arlington TX 298 687
39 Philadelphia PA 192 533 89 Austin TX 129 439
40 Philadelphia PA 734 1,351 90 Austin TX 157 450
41 Pittsburgh PA 88 120
91 Austin TX 64 239
42 Pittsburgh PA 186 473
92 Austin TX 100 250
43 State College PA 158 662
44 Harrisonburg VA 140 425 93 Denton TX 189 700
Pacific Coast Region 94 Huntsville TX 184 653
45 Berkeley CA 70 238 95 Huntsville TX 150 544
46 Irvine CA 500 1,441 96 San Antonio TX 235 932
47 Sacramento CA 90 300 97 San Marcos TX 143 234
48 San Francisco CA 200 600
98 San Marcos TX 183 348
49 Corvallis OR 124 624
99 San Marcos TX 232 510
50 Eugene OR 231 444
51 Portland OR 141 141
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 272020 STUDENT HOUSING DEVELOPMENT PIPELINE
44
42 43
40 41
9 10 17
3031
32
2829
1213 3334
38 2223 2425 11 16
37 1920 12 56 1415 2627
39 21 3 4
18 8 7 36
35
63 64 6769
7677 6870
6566
49 75 7172
60 73 74
79
78 80 47 6159
48
4546
8182 62 58
8384 56
8889 8687 51-54
90 85
2020 deliveries will continue the eight-year 57
development boom in the student housing space. 50
55
The above map pinpoints all known developments as
reported by Axiometrics and FourPoint independent
research.
2019 Portfolio Student Housing Development Pipeline Totals
90 PROPERTIES IN PIPELINE
16,389 UNITS
IN PIPELINE
44,534 BEDS IN PIPELINE
Pacific Coast Region Midwest Region
# OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE # OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE
8 1,454 4,761 17 2,233 4,941
Mountain States Region Southeast Region
# OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE # OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE
8 1,319 4,273 33 6,450 17,255
Southwest Region Northeast Region
# OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE # OF PROPERTIES IN PIPELINE # OF UNITS PIPELINE # OF BEDS IN PIPELINE
13 2,823 7,725 11 2,110 5,579
28 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT © 2020 FourPoint Investment Sales Partners. All Rights Reserved.2019 STUDENT HOUSING DEVELOPMENT PIPELINE
# CITY STATE UNITS BEDS # CITY STATE UNITS BEDS
Midwest Region Southeast Region
1 Champaign IL 322 658 45 Auburn AL 221 610
2 Champaign IL 50 164 46 Auburn AL 140 500
3 Champaign IL 30 104 47 Birmingham AL 196 518
4 Champaign IL 20 68 48 Tuscaloosa AL 132 296
5 Indianapolis IN 56 98 49 Russellville AR 240 519
6 Lawrence KS 120 312 50 Davie FL 225 775
7 Lexington KY 176 581 51 Gainesville FL 156 492
8 Louisville KY 231 591 52 Gainesville FL 109 413
9 Minneapolis MN 169 192 53 Gainesville FL 235 618
10 Minneapolis MN 114 417 54 Gainesville FL 310 589
11 Omaha NE 247 371 55 Miami FL 886 1,244
56 Tallahassee FL 272 891
12 Cleveland OH 115 235
57 Tampa FL 217 640
13 Cleveland OH 64 236
58 Albany GA 75 216
14 Columbus OH 133 300
59 Atlanta GA 230 801
15 Columbus OH 258 258
60 Carrollton GA 200 628
16 Youngstown OH 75 185
61 Kennesaw GA 179 656
17 Menomonie WI 53 171
62 Ruston LA 118 324
Mountain States Region
63 Boone NC 146 380
18 Colorado Springs CO 42 154
64 Chapel Hill NC 300 626
19 Fort Collins CO 233 767
65 Cullowhee NC 62 248
20 Fort Collins CO 107 402
66 Cullowhee NC 52 210
21 Greeley CO 72 108
67 Durham NC 80 200
22 Reno NV 158 508
68 Raleigh NC 217 644
23 Reno NV 125 330
69 Raleigh NC 132 326
24 Orem UT 300 960
70 Raleigh NC 180 523
25 Orem UT 282 1,044
71 Wilmington NC 150 493
Northeast Region
72 Wilmington NC 150 470
26 Towson MD 248 611
73 Columbia SC 132 507
27 Towson MD 214 720
74 Conway SC 182 564
28 New Brunswick NJ 181 575
75 Spartanburg SC 200 486
29 New Brunswick NJ 186 592
76 Knoxville TN 160 310
30 Buffalo NY 219 232
77 Knoxville TN 166 538
31 Buffalo NY 322 354
Southwest Region
32 New York NY 80 153 78 Tempe AZ 391 1024
323 State College PA 247 824 79 Tempe AZ 268 464
34 State College PA 268 1,093 80 Tempe AZ 285 723
35 Blacksburg VA 75 215 81 Arlington TX 298 701
36 Lynchburg VA 70 210 82 Arlington TX 298 700
Pacific Coast Region 83 Austin TX 156 512
37 Berkeley CA 58 74 84 Austin TX 166 567
38 Davis CA 160 540 85 Houston TX 147 405
39 San Jose CA 260 1,039 86 Huntsville TX 150 544
40 Corvallis OR 146 446 87 Huntsville TX 181 724
41 Corvallis OR 228 687 88 San Marcos TX 220 754
42 Pullman WA 187 767 89 San Marcos TX 120 373
43 Pullman WA 188 558 90 San Marcos TX 143 234
44 Seattle WA 227 650
© 2020 FourPoint Investment Sales Partners. All Rights Reserved. FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT | 29Property: West Edge
Developer: Gilbane
University: University of Colorado at Colorado Springs
Photo: David Patterson Photography
Student Housing
Supply & Demand “ Gilbane’s student housing business is evolving to address new market
realities, including higher costs and dwindling pedestrian land supply,
through a greater emphasis on density and a refined set of high impact
amenities. PEDESTRIAN LOCATIONS WITH HIGH BARRIERS TO ENTRY
AND POSITIVE ENROLLMENT TRENDS WILL REMAIN KEY METRICS
Analysis FOR OUR UNDERWRITING while we concurrently look to enhance our
communities with more academically-oriented amenities including
virtual learning centers, micro study pods and wellness centers. These
purposeful amenities along with ultra-livable units will provide our
students with the Next Level of Student Housing® for 2020 and beyond.
30 | FOURPOINT 2019 STUDENT HOUSING YEAR-END REPORT
EDWARD T. BRODERICK
CEO and President
Gilbane Development Company
”
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