The Flats - Illinois State University_Property for Sale

709 South Main Street, Normal, IL, 61761, US

The Flats - Illinois State University

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present The Flats at ISU (“The Flats” or the “Property”), a 155 unit / 447 bed student housing community serving Illinois State University (“ISU” or the “University”). The property offers a full unit mix ranging from Studio units to 4x4, all offering full bed-bath parity. In addition, 100% of units at The Flats host modern interiors with LTV flooring, stone countertops, stainless steel appliances, and mounted flat panel HDTVs. The Property grew rents by over 5% for AY 24- 25, and all but one bed at the Property is currently occupied.

The Flats at ISU offers the best location in the ISU student housing market. The Property is across the street from campus and a five minute walk to main campus and the State Farm Hall of Business. In addition, the Property offers the best retail in the market. The Flats hosts three retail tenants: Chipotle, Jersey Mike’s, and Sushi Primo. In addition, the Property is adjacent to Potbelly, Noodles & Co., and Buffalo Wild Wings. This location is unmatched in the market, and with 100% of units offering top-of-the-market finishes, The Flats stands out as a top asset at ISU.

Performance at The Flats is supported by an ISU student housing market with a significant supply-demand disparity. In 2024, the University announced record enrollment of 21,546 students, with the largest first-year class in 37 years. Currently, there are only 9,845 purpose-built student beds in the market, and the market has consistently reached high-90% occupancy.

The Flats at ISU is the best asset in an excellent student housing market. The Property is well situated to continue strong leasing performance and rent growth.

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Attributes

Number of units

155

Beds

447

Media

Investment Highlights

99% Occupied With Consistent Rent Growth

The Flats at ISU is currently 99.8% occupied, with just one vacant bed. The Property has achieved an average of over 4% annual rent growth for the past 3 years while consistently leasing into the high-90% range.

Best Location In ISU Market and Unparalleled Retail

The Flats at ISU is the best located asset in the Illinois State student housing market. The property is across the street from campus, surrounded by the best retail offerings in the market. The Property hosts Chipotle, Jersey Mike’s, and Sushi Primo, and is next door to Potbelly, Noodles & Co., and Buffalo Wild Wings. The Flats is also a five minute walk to campus’ main quad and business school.

Modern Unit Interiors

In addition to location superiority, the Property offers 2010’s construction with modern unit interiors across Studio to 4x4 units. Units at the Flats are complete with LTV flooring, stone countertops, stainless steel appliances, and mounted HGTVs. This combination of best-in-class location with desirable units position The Flats as the best asset at ISU.

Record-Breaking Enrollment With Major Disparity In Supply

Performance across the ISU market will be propelled by consistent growth in first-year class size and a substantial undersupply of student housing relative to enrollment. Currently, purpose built student housing supply equals just 46% of total enrollment at ISU. The University announced a record 21,546 students for AY 24-25, along with 4,256 students in its 2024 freshman class, the largest in 37 years and a 44% increase over 2013. With no further housing in the development pipeline, current market assets are well situated for future performance.

ISU Pricing Clarity

JLL recently sold The Edge on Hovey, now the Social on Hovey, via a marketed process. Investors will have strong transparency to make an informed offer.

TIF Agreement

New ownership is presented with additional upside via a TIF agreement at the Property.