the opportunity

Berkadia Real Estate Advisors are pleased to present the rare opportunity to acquire a value-add student housing asset pedestrian to the University of Missouri - Columbia, with an enrollment of over 33,265 students. University Place is located directly across the street from the University of Missouri - Columbia, which operates at nearly full capacity of its on-campus housing accommodations for 7,200 students.

This leaves over 26,000 students in need of off-campus housing, making the university a major source of apartment demand. 

 

336 Beds

120 units

built in 2004

PRICE TO BE DETERMINED BY MARKET

 

property highlights

  • Adjacent to Campus   
  • 95% Occupied   
  • Dominant Strategic Location
  • Over 26,000 Students Require Off-Campus Housing as Only 7,200 Can Be Accommodated On-Campus 
 

property highlights

  • Adjacent to Campus   
  • 95% Occupied   
  • Dominant Strategic Location
  • 21% Enrollment Growth over Last Eight Years
  • Over 26,000 Students Require Off-Campus Housing as Only 7,200 Can Be Accommodated On-Campus 

 

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The Opportunity

Berkadia is pleased to present the exclusive opportunity to acquire University Place, a 168-unit / 351-bed student housing community serving the students of the University of Missouri. University Place has an irreplaceable location as it is effectively on-campus.  The property is located at the north west corner of College Avenue and University Avenue, surrounded by university facilities. On the north and south east corners or College and University sit two fraternities, while the university’s monument sign sits due south in front of the Biology classrooms of Lefevre Hall. The total enrollment at University of Missouri was 33,266; representing the first decline in enrollment in 13 years. Despite the enrollment dip, University of Missouri still sits below the national average of on campus housing capacity, only able to house 7,236 students or 21.75%. Fortunately, despite the on campus housing deficit, the university only requires freshman to live in dorms which are consistently above 95% occupancy.

Built in 1967, University Place has benefited from sporadic upgrades since current ownership acquired the property in 1991. In a market that has seen long standing enrollment growth (up 16.82% in the last 10 years), it has always been a target of student housing development.  While first generation student housing in Columbia was quick to offer top notch amenities, assets a few miles from campus have been discarded by students looking to live closer to campus. As more infill sites have been developed closer to campus, they command a much higher price point that had previously existed, raising the tide for all rents in the market. University Place has benefited from this lift though still charges an average bed rent below $500 consistently leasing above 95% occupancy. 

University Place represents a heavy value add opportunity adjacent to a tier 1 campus.  The Lofts at 308 Ninth, TODD Student Living and District Flats were all built in the last 3 years in comparable locations, and have an average bed rent of $908.  By implementing systematic in unit upgrades to the property, University Place should at least be on par with the average bed rent of the 21 properties within a mile of campus that collect an average bed rent of $615, a 24% increase in rental revenue from present. 

As the flagship university in Missouri, forecasts show University of Missouri quickly recovering.  Sitting at the intersection of College Ave and University Ave, the long term prospects for University Place are unparalleled in the market.