Description de l'actif
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Hale Mahana (or the “Property”), a 191-unit / 589- bed student housing community serving the flagship University of Hawaii – Manoa (the “University” or “UH”). Hale Mahana is the top off-campus, purpose-built, student housing property in the state of Hawaii. For the 2022-2023 Academic Year ("AY"), the Property maintained 99% occupancy and is currently 92% pre-leased as of August 3rd for the 2023-2024 AY while achieving ~16% rent growth.
Caractéristiques de l'actif
Points clés d'investissement
- Hale Mahana serves the University of Hawaii at Manoa, the State of Hawaii’s Flagship University. UH offers over 200 majors across 18 colleges and has 21 division one sports teams. With almost $200M in upcoming campus developments, and the projected revenue reaching an all-time high of $660M, UH is well-positioned for continued growth in the upcoming years. Hale Mahana is also located less than a mile from Chaminade University of Honolulu, who recently welcomed their largest first-year class in history.
- The University of Hawaii has achieved 6% enrollment growth since 2020. This is largely in part to UH welcoming their largest first year class of over 3,000 students, which exceeded their previous record by 5.7%.
- There are no other institutional purpose-built student housing properties that serve the University of Hawaii. Students looking for apartment-style, off-campus housing options have few viable options that are pedestrian to UH. With only 3,772 on-campus beds and limited off-campus housing, many students are forced to pay higher rents at surrounding multifamily properties. Considering these demand fundamentals, new ownership only has to capture 4.88% of current enrollment to achieve 100% occupancy.
- Over 75% of land ownership in Hawaii is allocated to the State and Federal Governments, the school districts, and a select number of families who inherited land in the 1800s. Due to this, many owners in Hawaii only have leasehold interest. The current owner of Hale Mahana possesses fee-simple interest allowing new ownership to have better access to financing, more potential cashflow, and increased opportunity for a future sale relative to its competitive set.
- Developing a multifamily property in Honolulu requires significant patience and resources. In the past year, the city of Honolulu saw its first for-rent multifamily development approval in decades. With Hawaii’s complex land-use laws, various levels of county approval, zoning restrictions, and environmental regulations, most developers opt for continental U.S. student markets.