Villas on Sycamore - Sam Houston State University

1615 Sycamore Ave, Huntsville, TX, 77340-5367, US

物件概要

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Villas on Sycamore (the “Property”), a 171-unit / 678- bed student housing community located in Huntsville, Texas. Built in 2011, the Property offers a mix of 2-bed and 4-bed floorplans with 100% bed-bath parity, a comprehensive amenity package, premier location, and upside opportunities for a new owner. New ownership is offered proven upside in a renovation program, which can unlock over $250,000 in additional rental income, along with low-hanging amenity upgrades and charge-backs to residents.

The property serves Sam Houston State University (the “University” or “SHSU”), which hosts over 21,000 students. SHSU has increased first-year enrollment by 22% over the past 5 years, and University enrollment is expected to increase by 33% to 28,000 students over the next decade. To support this growing population, the university has announced a 10-year Master Plan targeting $236mm in improvements to classrooms, laboratories, and campus facilities.

Despite the growing demand for student housing, new supply has been limited since Villas’ construction and the pipeline remains empty. With average market rents of $618 per bed, it is unlikely for additional beds to deliver for the foreseeable future. The low threat of new entrants protects the property’s market position and the relative age of competitors’ inventory provides opportunity for a new owner to implement upgrades to amenities and units to accelerate NOI growth.

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特性

ユニット数

171

ベッド

678

竣工年

2011

メディア

投資のハイライト

ENROLLMENT GROWTH WITH MUTED PIPELINE & BARRIERS TO ENTRY

SHSU has increased its first year enrollment by 22% over the past 5 years, and is expected to increase total enrollment by 33% up to 28,000 over the next decade. Market rents at SHSU have grown at about 3% annually for the past decade, but to levels that do not presently support additional new developments. Consequently, market properties are well positioned to continually improve performance as enrollment grows with no new deliveries for the foreseeable future.

REVOLUTIONARY MASTER PLAN

The University’s 2023-2033 Master Plan – which was approved in May 2023 – indicates that enrollment is projected to grow by 33% to 28,000 students, and allocates $236.6 million for campus and facility improvements. Student housing assets will benefit from the substantial investment into the University, in addition to the significant enrollment growth.

PREMIER LOCATION PROXIMATE TO CAMPUS

Villas on Sycamore is located 0.1 miles from campus and a half mile from the center of main campus, one of the best locations in the SHSU market. This premier location serves as a key driver of demand, supporting asset occupancy and rent growth.

WIDENING SUPPLY-DEMAND DISPARITY

As enrollment increases as SHSU, the already favorable supply-demand disparity will widen to support student housing performance. Currently, purpose-built assets account for 60% of full-time enrollment. JLL is aware of market properties that have garnered interest from multifamily buyers, which would decrease the student housing bed count. These factors, paired with the muted development pipeline, will support continued improvement in the student housing market’s fundamentals at SHSU.

PROVEN DEMAND FOR RENOVATED UNITS

The Grove at Huntsville recently renovated units and achieved full occupancy for AY 24-25, with over 6% rent growth. New ownership can follow the success of The Grove’s renovation with updates to units and amenity spaces at Villas on Sycamore, driving increases to rate, occupancy, and NOI. Such programming offers over $250,000 in additional potential rent.

MULTIPLE UPSIDE OPPORTUNITIES

In addition to a renovation, smaller scope initiatives such as adding covered parking spots, better utilization of green space, and implementing charge-backs for water & sewage expenses will provide additional NOI uplift and improve tenant satisfaction.