Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Evolve on Main (the “Property”), an 81-unit / 290-bed boutique housing community that serves Washington State University (the “University” or “WSU”). Evolve on Main is distinguished amongst its peers as it is the only student housing property located on Main Street, providing students the unique combination of a highly desirable downtown location while still pedestrian to campus. Built in 2018, the Property offers in-demand amenities complete with a fully equipped fitness center, furnished units, numerous lounges, and more. These factors have contributed to the Property’s current occupancy of 97% and 88% prelease occupancy as of May 2023, which is more than 15% ahead of this time last year.
Evolve on Main serves Washington State University’s student body population of 17,827. WSU is a Power 5 University in the Pac-12, with 15 Division One sports teams. In the past two years, the University has deployed over $21 million in campus renovations and new developments. There is another $130 million in the development pipeline for the creation of state-of-the-art engineering and life sciences facilities.
Superior infill location and a well-curated amenity set defines Evolve on Main’s positioning in the market. New ownership has the unique opportunity to acquire an asset that needs to capture just 2.50% of the available student base to achieve 100% occupancy every year, representing a significantly lower ratio than most student housing investment opportunities of this caliber product.
TIER 1, POWER FIVE
Washington State University is a Tier 1, Power Five institution. Power Five schools are known for continually bringing in the most revenue, attracting top recruits, and receiving national exposure. On average, Power Five schools have higher pre-lease occupancy, rent growth, and enrollment growth than the national average.
Evolve on Main is located just .23 miles from campus. In addition, it is the only WSU student housing property located in Downtown Pullman. This location gives students direct access to restaurants and shopping, while still being in walking distance to campus.
Market-Leading Preleasing Occupancy -
Evolve on Main is currently 97% occupied and 88% preleased for the 23/24 AY as of May 2023. The Property’s impressive amenities and infill location, combined with the market’s bounce back from Covid, has led to terrific preleasing velocity for the 23/24 AY that is 15% ahead of this time last year.
Exceptional Upkeep -
The ownership group has done an exceptional job with the upkeep and renovations of Evolve on Main. Since the property was built in 2018, current ownership has deployed intentional capital for building improvements such as new furniture, gym equipment, additional community amenities.
Cashflow Upside -
One of the four retail spaces on the ground floor of Evolve on Main is currently leased. Washington Federal Bank leases approximately 1,900 SF through February 2026, and a five-year lease with Amazon is expected to be executed ahead of the 23/24 AY for package lockers. Further, rents at the property are significantly below market averages despite having a superior location and vintage.
Covid Bounce Back -
The University’s administration took a harder stance on Covid than most Power-5 Schools across the country. The resulting procedures and communication can be, in part, to blame for recent enrollment declines. As of January 2023, student and faculty no longer need to be vaccinated. Heading into the 23-24 academic school year, the number of occupied beds has significantly increased, nearing pre-pandemic levels and the University has publicly announced multiple initiatives to increase enrollment to pre-pandemic levels. Despite the recent volatility, Evolve remains a high-performing asset.