The Reserve at Clemson _Property for Sale

103 Sumter Ln, Central, SC, 29630-4401, US

The Reserve at Clemson

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present The Reserve at Clemson ("Reserve" or the "Property"), a 177 unit / 590 bed student housing community serving the student population of Clemson University ("Clemson" or "University"). The Property offers 2-bedroom and 4-bedroom units, and has achieved nearly 100% occupancy each of the last 5 academic years.

Clemson has experienced strong, consistent enrollment growth all while becoming more competitive due to a 250% increase in applications since 2016. The school just announced their first-year class of 5,031 students will be a new record and represents an 12% increase over last year's class, which was also a record. Since 2013, enrollment at Clemson has grown at a CAGR of over 3%. The Reserve at Clemson offers a strong opportunity within this environment, as the Property offers middle market pricing with new-asset quality; the Property underwent renovations in 2023 which included upgrading 20% of the beds and resulted in 24% rent growth to those units. The next owner will have the opportunity to renovate the remaining units in order to continue achieving rent growth that outpaces the market while remaining competitive on pricing.

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Attributes

Number of units

177

Occupancy

100%

Year built

1999

Year renovated

2023

Media

Investment Highlights

MARKET LEADING HISTORICAL OCCUPANCY & PRE-LEASING VELOCITY

Reserve at Clemson has reached 100% occupancy prior to move-in each of the prior 4 academic years. Reserve achieved 90% pre-leasing for the AY 2024-25 prior to the end of December, outpacing the market by 20% while achieving 8.8% rate growth for the full academic year.

23% ENROLLMENT GROWTH AND 255% APPLICANT INCREASE SINCE 2016

Clemson University is one of the fastest growing universities in the country in terms of popularity, selectiveness, and reputation. From 2016 to 2023, enrollment grew by 23% and applications grew by approximately 250% (23,500 to 60,000). It was just announced that the University will be welcoming its largest freshmen class for a second year in a row, achieving 12% growth. The University recently announced it received a record number of applicants in 2024, and will increase the size of its first year class by 8% over 2023. This popularity has been driven by academic prestige, elite athletics, a desirable location and climate, and well-balanced student life. The surge in applications indicates the University is well positioned for long term growth, which will support its student housing assets for the foreseeable future.

VALUE-ADD OPPORTUNITY – PROVEN TRACK RECORD AND OUTSIZED RENT GROWTH OFFERING

The Reserve at Clemson completed renovations on its 59 2-bed, 2-bath units (20% of Property beds) ahead of Fall 2023 move-in, and achieved a bed rent premium of $152 over 2022 2023 rates, a 24% increase. In the first two leasing cycles since these renovations have been completed, the Property has maintained excellent leasing performance, suggesting a strong willingness to pay these premiums. These premiums, while substantial, still place The Reserve at Clemson at a significant discount to newer vintage assets. New ownership is offered the opportunity to continue these renovations on the remaining 80% of beds, which will result in $950,000 - $1 million in additional annual revenue.

IDEAL COMBINATION OF QUALITY AND MIDDLE MARKET RENT PRICING WILL PROTECT DEMAND

The Reserve at Clemson is well positioned as an asset that offers middle-market rents while providing brand-new quality units as a result of recent renovations. The Reserve at Clemson’s strong leasing performance will continue to be supported as students look for affordable alternatives to newer construction. The Property offers 10 minute access to campus as one of the closest stops on the Cat Bus, and with the completion of value-add renovations, will have entirely new units that are priced at a substantial discount to new construction.

South Carolina Contact:

Lee Allen

Lee.Allen@jll.com

(843) 805-5111

License # SC - 74245