Description

Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to present Eastgate Apartments ("Eastgate" or the "Property"), a 325 unit, 436 bed student housing property pedestrian to Baylor University ("Baylor" or the "University"). The Property offers investors business plan flexibility via several upside scenarios. Rents at Eastgate are currently $300-$600 per bed below the competitive set despite offering the top location; through a full unit renovation and furnishing program, rents can be marked to a $200-$250 per bed discount to the comp set average and generate over 40% rent growth at the Property. Additional upside scenarios include cash flowing the asset as a covered land play for future development given the minimal supply targeting Baylor, or application for a tax exemption under a CHDO entity, as property rents are currently low enough to qualify under affordable housing laws.

Two comparable properties serving Baylor have recently completed renovation programs, and pushed rents to the top of the market. Pricing upside at Eastgate is supported by a wealthy student base - median parental income is 26% above national average.

Given the upside offered by Eastgate, investors are offered attractive going-in pricing for Power-4 adjacent product. Eastgate is offered to investors at a steep discount to the cost of new development, enabling investors to generate value-add returns via a premium exit after achieving improved operations at the Property.

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