STUDENT HOUSING

[Moses Berkowitz]

Hi, My name is Moses We are looking in to buying a development site with proposed plans for student housing. Anybody with advise? Or experience? We are currently a Brooklyn based group of investors. Thank you.

[Steve Potash]

Hi Moses,

It would be good if one of your investors has invested in student housing before and it would be great if they've invested at the university that you're targeting.  I've been investing in student housing for 24 years and throughout the years the student's top needs/requirements continue to change so you always need to be ahead of the game to keep your properties in demand.   I've mentored investors in student housing... these were seasoned investors, but didn't understand the rental process, leases, etc and they would have been 0% occupied because they were applying "normal" rental processes instead of targeting students... that's why it's important to have someone that's been investing in student rentals on your team.  Each university is different, some have 12 month leases, some 9 months.  Most have the parents sign a guarantor agreement.  Some have individual leases for each tenant, some have 1 lease for all tenants.  In larger universities, you tend to see more amenities because the larger institutions invest there and some are building apts that look like 4-5 star hotels.  At these locations, some students don't mind to drive if they're getting all these amenities.  In smaller universities, you won't see the big players, so there aren't as many amenities, so location is real important.  Where I invest.. rents can vary from 1 block from campus vs 5 blocks to campus.   We're almost finished building a 28 unit apt building directly across the street from campus.  We finish them out with stainless steel appliances, granite, vinyl plank floors, etc.  Feel free to ask any questions...