Renters Flocking to Student Housing Conversion in Brooklyn
- Sep 12, 2011
New York—In downtown Brooklyn, a former seven-story multifamily building is being converted to a 44-unit student housing community. The property, 902-908 Bedford Avenue, houses undergraduates and graduate students and their families, most of whom attend the Pratt Institute and Long Island University.
DelShah Capital LLC, a real estate management and CRE debt acquisition company, in charge of 902-908 Bedford Avenue’s rebranding, along with Distinct New York, a real estate marketing company, renovated the building in eight months. Currently, DelShah, having completed its value-enhancing program, is listing the building with Massey Knakal for sale at $17 million.
The units range from two-bedroom apartments with outdoor balconies to six-bedroom suites.
The apartments also have been given “student-friendly” upgrades, including a student lounge, a rear deck and monitored security cameras. According to Victor Jung, executive vice president of operations of Distinct New York, the apartments have green elements such as nozzles on the showerheads that promote water conservation, “green” paint, and energy efficient appliances.
Rents for 902-908 Bedford Avenue range from $900 per room to $4,500 for a four-bedroom apartment.
“The students seek larger units to share with classmates, are less price sensitive and desire a rental building that caters to their needs in close proximity to specific campus locations,” Michael Shah, principal and CEO of DelShah, said in a statement.
Though one would think that potential residents would be more price sensitive in this slowed economy, this is proving not to be the case for students.
Jung believes this is because the general package of 902-908 Bedford Avenue is so appealing. “We offer stability to students and parents because it’s all inclusive,” he tells MHN.
According to Jung, the appeal also lies in the fact that these off-campus apartments are cheaper than the on-campus ones, and the fact that students have “parent guarantors.”
“Bottom line, they need a place to live,” Jung says.
This appears to be the case—the property is already 98 percent occupied.