Park Mesa
East Broadway Road 1547, Mesa, AZ, 85204, US
€8,014,000 | 42 units
Jones Lang LaSalle Americas, Inc. ("JLL") is pleased to present The Carmin (the "Property" or "Carmin"), a trophy student housing community pedestrian to Arizona State University ("ASU," the "University," or "Arizona State") in Tempe, AZ. Delivered in 2017, Carmin is among the top housing options at one of the top-ranked universities in the U.S. The Property offers a mix of studio, 1-bed, 2-bed, and 4-bed floorplans.
Carmin is located on the first block east of the campus boundary, making Carmin one of the closest student housing properties to campus in the market. At just 0.1 miles from campus, residents are less than a 3 minute walk from academic buildings.
The Property's amenities are second to none and offers residents an all-inclusive living experience. The rooftop oasis, modern fitness center, numerous lounges and study spaces, further complimented by the luxurious unit interiors and walkability to campus, propelled the Property's consecutive years of 15% rent growth.
Despite the Property's rent growth this year, there remains a mark-to-market opportunity for a new owner as comps that are farther from campus are achieving $100+ monthly premiums per bed.
Carmin's irreplaceable location and long-term historical performance offers a new investor the opportunity to gain exposure in one of the most sought after student housing markets in the country.
TIER 1, POWER 5 UNIVERSITY
Arizona State is one of the most recognized universities in the world with hundreds of academic programs, a large alumni base, and countless #1 rankings. More than 68,000 prospective students applied as first-year students in Fall 2023, setting a new record. Also in 2023, ASU announced it would move athletic conferences, and now the Sun Devils are competing in the Big 12 for the 24/25 AY.
LARGEST UNDERGRADUATE STUDENT BODY IN THE U.S.
The Arizona State University System boasts the largest undergraduate student enrollment in the U.S. The System welcomed 79,593 in-person students in Fall 2023, and the Tempe campus is the largest within the system with 57,144 students in Fall 2023. Undergraduate enrollment has grown 20% since 2013 and total enrollment has grown by 844 students on average over the last ten years.
IRREPLACEABLE LOCATION & INDEMAND AMENITIES
The Carmin is located just 0.1 miles from campus, making it one of the closest housing options in Tempe to ASU. Because Tempe is a dense, urban infill city, there are effectively no land parcels where a developer can build a competitive property that would be closer to campus than Carmin. The Property’s unparalleled amenities and location enabled 15%+ rent growth for the 24/25 Academic Year (“AY”) and ensure the marketability under new ownership long into the future.
DISCOUNT TO REPLACEMENT COSTS
Given the rapidly increasing cost of construction, development equity is no longer committing to projects in the pipeline. New construction today would require rents per bed in excess of $2,100, or 50% higher than Carmin’s 24/25 AY average rate. This delta shows Carmin is being offered at an attractive basis that’s a steep discount to replacement costs, and it proves how unlikely any projects in the development pipeline will be capitalized if they’re not already under construction today.
MARK-TO-MARKET OPPORTUNITY
Despite Carmin’s leasing performance this year, there is still a $100+ per bed per month rent gap between Carmin and its closest comps. Because Carmin’s rates are lower than its comp set, a new owner can begin to bridge the gap to achieve outsized growth without nearing high watermark rates.