Having closed on the portfolio, the joint venture partnership of Giles Capital Group and Rosemurgy Properties has launched a multi-million dollar renovation program intended to reposition the two assets within Gainesville’s competitive student housing market.
The ongoing improvements to the two student housing communities include upgrades to unit interiors and renovations of clubhouses, pool areas and fitness centers as well as exterior painting and landscaping.
“We really like the Gainesville market, as there are over 60,000 students in the area, with the University of Florida being recognized as one of the top schools in the country. These properties are a great fit for our value add strategy,” Rick Giles, managing partner for Park Partners Residential and CEO of Giles Capital Group, told MHN.
“We plan to make major improvements to Campus Club and Gateway at Glades, and while we do not disclose our projected returns, we do expect these assets to perform exceptionally well. Historically these properties have been two of the most popular properties in the market. However, the lack of capital improvements over the years has negatively impacted the properties’ positioning in the market. We look forward to bringing them back into prominence.”
The 252-unit Campus Club, at 4000 SW 37th Boulevard, features fully-furnished, three-bed, two-bath and four-bed, three-bath units delivering a total of 924 beds.
Students benefit from common-area amenities that include resort-style swimming pool with spacious pool deck, round-the-clock fitness center, computer lab, four study rooms, two sand volleyball courts, outdoor basketball court, dog park and covered parking. The property features pedestrian access to Butler Plaza, the largest retail park in Florida, and is situated on the campus shuttle bus route.
The 120-unit Gateway at Glades, at 3415 SW 39th Boulevard, features three-bed, three-bath and four-bed, two-bath units providing a total of 432 beds.
Among community amenities are a resort-style pool and spa, fitness center, sand volleyball court, two outdoor basketball half-courts, computer lab, television lounge and game room. This community is also located on the campus shuttle bus route.
“The biggest benefit of these properties is the location. Every imaginable retailer and restaurant is within walking distance, with more being developed right now,” Giles said.
“So the location really caught our attention first, and then we also determined that there is an opportunity to significantly upgrade the amenities and unit interiors. The only challenge was to understand and properly underwrite the cost of taking care of the deferred maintenance and renovating the properties. I believe that we won the bid due to the fact that very early in the process we spent a lot of time on understanding the cost of upgrading the properties, giving the seller confidence that our assumptions were correct. The fact that we have successfully developed and renovated student housing in the past also helps sellers to underwrite our abilities.”
Because the strategy for these properties is to renovate and re-position them, “our goal was to quickly and accurately generate a scope of work with costs that made economic sense,” Giles said. “Our team has a lot of experience in doing value-add projects with speed and efficiency, so this opportunity was a perfect fit for us.”
Peak Campus will provide management and leasing services for Campus Club and Gateway at Glades.
“We are excited to be entering the Gainesville market with the acquisition of Campus Club and Gateway at Glades,” Giles summarized. “These properties are the source of many great memories for thousands of former area students, and we look forward to bringing them back into prominence.”
Park Partners Residential is headquartered in Boca Raton, Fla. The company focuses upon developing and acquiring properties throughout the Sunshine State.