Definition of Student Housing

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While there are many who take a stab at it, IRV Capital can only find one “official” source, or recognized authority, for a specific definition of “Purpose-Built Student Apartments”. Because Freddie Mac has specific programs to provide debt for student apartment investing, it naturally follows that they would be compelled to define it. The following characteristics are required to meet Freddie Mac’s criteria for a student housing loan:

• Supporting college/university has 8,000 or more students; student housing properties located within close proximity (1) to multiple schools that have a combined student body of 8,000 students or more will be considered;
• Purpose-built student housing properties; must have a minimum of one bathroom for every two bedrooms, and each apartment must have a separate full kitchen;
• Stabilized garden, mid-rise and high-rise apartment properties that are greater than 50% occupied by student tenants; and
• Property is located less than two (2) miles from college/university or on a public transportation route.

(1) IRV will pipe in here to grammatically correct Freddie Mac. Is there such thing as “far proximity”? C’mon! The redundant phrase “close proximity” is widely abused in real estate circles and is probably too far entrenched for IRV to reverse – but we will keep fighting the good fight – proximity is sufficient folks!