Various locations

Yale Portfolio

Portfolio description

Jones Lang LaSalle Americas, Inc. (“JLL”), a licensed real estate broker is pleased to present the opportunity to acquire a ten-asset portfolio (“Yale Portfolio,” “Portfolio” or “Properties”) in New Haven, Connecticut that serves the students at Yale University (“Yale” or “University”). The Properties are located within a five-minute walk to campus and have delivered strong historical performance with consistent 100% occupancy for more than five consecutive years. During that time period, the Properties have delivered 10%+ annual rent growth, growing rents nearly 50% in the aggregate. The Yale market is one of the strongest markets in the country, with a ~3.7% total enrollment CAGR or ~17% aggregate enrollment growth through Covid over the last 5 years.

Ranked the #3 university in the country, Yale attracts applicants from across the globe who hope to enroll in the dozens of #1 ranked academic programs offered by the University. Yale received a record-breaking 50,022 applications in Fall 2022 – representing a 7% increase over last year and 42% increase over Fall 2019 – which pushed the University’s acceptance rate to an all-time low of 4.46%, making it the fourth most exclusive university in the nation.

The Portfolio offers proven value-add upside, with the opportunity to renovate and furnish the remainder of the Portfolio to generate outsized returns. To-date, 12 units, representing ~50% of the Portfolio, have been renovated and only 1 unit has been furnished. The renovations, together with market rent increases for AY 2023-2024 and embedded mark-to-market, have the opportunity to create an additional $185,800 per year in NOI on top of the $516,300 per year in in-place NOI.

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Attributes

Building area gross

2,328 m²

Number of units

21 units

Yale Portfolio (8 Properties)

Media

Investment Highlights

One Of The Top Universities In The Country And World

Yale is the #3 ranked university in the nation and continues to set all-new records. Enrollment has grown at a very strong ~3.7% CAGR over the last 5 years, representing a ~17% aggregate enrollment growth despite the impact of Covid. Yale received a record-breaking 50,022 applications in Fall 2022 -representing a 7% increase over last year and 42% increase over Fall 2019 - which pushed the University’s acceptance rate to an all-time low of 4.46%, making it the fourth most exclusive university in the nation.

Irreplaceable Locations Pedestrian To Campus

The Properties are located just steps from campus, in the heart of the East Rock and Mansfield neighborhoods, which are the most popular areas among undergraduate and graduate students. A Portfolio of this size would be impossible to replicate today and has been carefully put together by the current owner over the last few years.

Exceptionally Strong Historical Performance

The Properties have been 100% occupied for 5+ consecutive years and have achieved 10%+ average annual rent growth. For Fall 2022, the Properties achieved 24% growth, including rent increases from renovations.

Proven Value-Add Upside Opportunity

There is an opportunity to increase annual rental income by an additional $185,800 for the next academic year through market rent growth, embedded mark-to-market and renovations to bring the unrenovated rents in-line with the renovated and furnished units in the Portfolio.

Significant Barriers to Entry

New Haven’s infill urban environment, particularly in the East Rock and Mansfield neighborhoods adjacent to campus where students want to live, make new development challenging. Today, there are no purpose-built student housing assets in New Haven.