Campus Circle _Property for Sale
Campus Circle _Property for Sale
1010 W University Ave, Urbana, IL, 61801-2427, US

Campus Circle

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Campus Circle (the "Property"), a 181 unit / 524 bed student housing community located in Urbana, IL. The asset offers investors a Core-Plus investment opportunity at one of the most consistent Tier-1 student housing markets in the country.


Campus Circle is located at the north end of University of Illinois Urbana-Champaign's ("UIUC" or the "University") campus, within walking proximity to the College of Engineering and the University's Main Quad. The Property is well positioned to continue to be a submarket leader.


UIUC has the second largest enrollment in the Big 10 main campuses. The Urbana-Champaign student housing market is 95% occupied, and with just 32,448 purpose-built beds to support the enrollment of 56,000+ students, there is substantial unmet demand in the market. According to AXIOmetrics, the student housing market has experienced 5% rent CAGR since 2015 and has remained 94% occupied on average during that time.


Campus Circle is a best-in-class asset compared to local comparables. The Property is part of a large, strong student housing market next to an exciting world-class university. The Property offers investors an opportunity to enter this market with a high-quality, high-performing asset.

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Attributes

Number of units
181
Beds
524
Year built
2016
Occupancy
90%

Media

Investment Highlights

ELITE TIER 1 U NIVERSITY

Campus Circle serves The University of Illinois, a tier 1 institution with elite academics, athletics, and robust student life. Enrollment has surged by nearly 11,000 students since 2015. As the flagship university of the state of Illinois, UIUC will benefit from continued popularity and state support for its over 56,000 students.


HIGH RENT GROWTH IN CAMPUSTOWN HAS MADE CAMPUS CIRCLE MORE DESIRABLE

Average rents at the top assets in Campustown surpassed $1,400 this year after achieving consecutive years of double-digit rent growth. Assuming the same unit mix and comparing by floorplan, average effective rent at Campus Circle is 40% below the top of the market. This delta has caused a lag in preleasing velocity at some of these top assets, while velocity at Campus Circle is in-line year-over-year.


EXCELLENT STUDENT HOUSING FUNDAMENTALS

University of Illinois presents a variety of factors that serve as tailwinds for a strong student market. The size of the University ensures that demand will be strong

for well-operated assets. Enrollment has grown by 10% or 5,000 students since 2019, and rent has grown in tandem with a 12% year-over-year increase just this year

according to CollegeHouse. There is also substantial unmet demand for student housing with over 25,000 more students than purpose-built beds in the market. This supply & demand dynamic has created a capture ratio of just 2.07% at Campus Circle.


TOP ASSET SERVING ENGINEERING SCHOOL SUBMARKET

Campus Circle is achieving the highest effective rent growth at 6.8% year-over-year amongst comparable properties in the submarket. Despite the outperformance, the average effective rate at Campus Circle remains 22% below comparables due to the unique concessions structure. A new owner can leverage the institutional upkeep of the Property to push for continued outperformance and close the gap between rental rates.

Campus Circle  4_Property for Sale
Campus Circle  4_Property for Sale

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Last updated
9 Jul 2024