Student housing developer, owner, manager and consultant Campus Advantage has sold On50, a student housing property located near the University of South Florida campus in Tampa, Fla. Campus Advantage successfully executed a value-add investment strategy at On50. It addressed the property’s deferred maintenance issues, and partnered in an integrated marketing approach delivered by industry specialist Catalyst.
“We’ve actually had some role with the property since 2010,” Austin, Texas-based Campus Advantage senior vice president Michael Orsak told MHN. “We took over as a third-party manager for another large institution that had acquired it with a partner a few years earlier.
“It has a large number of one-bedrooms and two-bedrooms, as well as some three-bedroom, four-bath units and four-bed, three-bath townhomes. All the units are very unique, without the uniformity you see in most properties.”
Campus Advantage acquired the property in 2014, in part due to its excellent location across 50th Street in Tampa from the University of South Florida, Orsak added.
“Our challenges were in dealing with 15 different unit types and placing tenants together within the various unit types,” he reported. “There had been deferred maintenance. We redid all the roofs, painted the property, cleaned up the mature landscaping and renovated 30 percent of the units, then tested the market by offering some renovated units at a premium.”
From acquisition to this month’s sale, Campus Advantage grew net operating income by 5.4 percent compounded annually, or about 17 percent over the three years.
“Because of our solid investment strategy, Students First residence life programming and involvement in conducting renovations to On50 units, property exterior, clubhouse and amenities, we were able to significantly increase the property and community value, making the asset more profitable,” Orsak said.
Added Mike Peter, president and CEO of Campus Advantage: “By maintaining and operating each property to the highest standard, we create an environment that our residents love, resulting in maximum occupancy, rental rate growth and returning resident ratios. We look forward to continuing to leverage our proven, value-add expertise to the benefit of future clients and partners.”