Rogue Valley Village
3761 South Pacific Highway, Medford, OR, 97501, US
CHF 2,585,000 | 76 units
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present University Edge (the “Property”), a 201 unit / 608 bed student housing community located in Kent, OH. The Property serves Kent State University (“Kent State” or the “University”), the third largest university in Ohio. Kent State serves a student population of over 26,000 and has been recognized as one of the top academic universities in the state. The University employs over 10,000 employees and creates an economic impact of over $5 billion annually to Ohio, making it an integral part of the state’s university system.
University Edge is one of the newest assets in the Kent State student housing market and offers a premier location, adjacent to campus and close to local nightlife. There are only four purpose-built properties built after 2020, and all but one achieved 95% occupancy in 2023. Additionally, the market has experienced sustainable rent growth year over year.
University Edge offers investors a unique value-add opportunity as rents are between $50 and $200 behind the competitive set across unit types. New ownership is offered the opportunity to bridge the rent gap and increase revenue by $350,000.
BEST LOCATED ASSET FOR CAMPUS AND NIGHTLIFE ACCESS
University Edge is located adjacent to campus and is the best located asset with close access to campus and student-centric night life. Additionally, as a 2012 vintage asset, the Property offers one of the newest assets in the market with state-of-the-art amenities along with modern interiors. Units are furnished with hardwood-style flooring, modern bathrooms, and high-quality kitchen countertops and cabinets. Units are further furnished with leather furniture and a full array of in-unit amenities.
STRONG HISTORICAL OCCUPANCY, RENT GROWTH & PRE-LEASING
University Edge has achieved strong leasing historically and is currently 91% pre-leased. This story is consistent for the submarket of newer-vintage properties at Kent State. There are four properties in the Kent State market developed after 2010. These properties have offered occupancy over 95% and are pre-leased over 15% ahead of the rest of the Kent State market. Additionally, University Edge achieved 10.6% rent growth in 2023, and is projecting nearly 3% growth in the current pre-leasing cycle. The demand for high-quality assets in this market will support continued performance at University Edge.
INTERIOR + COURTYARD VALUE-ADD OPPORTUNITY
The unit interiors at University Edge can be improved with newer kitchen appliances and extending hardwood flooring to unit bedrooms. Further, there is a large courtyard area currently occupied by empty grass space can be easily repositioned to further garner student interest. These renovations represent a relatively small change to the units that will allow rents to be pushed to the top of the market. Rents are currently between $50 and $200 behind the competitive set across unit offerings. New Ownership is offered the opportunity to bridge the rent gap and increase revenue by $400,000.
UNDER-SUPPLIED MARKET WITH 0 BEDS IN PIPELINE
Kent State’s student housing market hosts just 3,920 privately owned beds, with no beds in the pipeline on or off-campus. In total, on and off-campus beds account for just 40% of total enrollment at Kent State’s main campus. Additionally, after 5 years of enrollment decreases, Kent State saw enrollment increase in Fall 2023, with applications increasing by 10% as well. This provides a strong foundation to market fundamentals in which assets built post-2010 have achieved strong occupancy, and market rents on the whole have increased by 49% over the past decade.
TRANSFORMATIONAL UPGRADES TO KENT STATE CAMPUS UNDERWAY
Kent State has also shown strong fundamentals as a University. The University is an integral part of Ohio’s public university system, employing over 10,000 individuals and creating an economic impact of $5 billion to the state annually. The University is in the midst of a $1 billion campus makeover through its new master plan, A Transformed KSU. Students will enjoy stateof-the-art facilities across campus, as well as new buildings including an Innovation Hub and Integrated Sciences Building, which will support excellent STEM and research programs at Kent State. These transformative plans indicate significant growth potential at University.
Ohio Brokerage
Jon Vanderplough
Managing Director
216.870.2361
Jon.Vanderplough@jll.com