Jones Lang LaSalle Americas (Illinois), L.P. (“JLL”) is pleased to present The Edge on Hovey (the “Property” or “The Edge”), a 125-unit / 481-bed student housing community adjacent to Illinois State University (the “University” or “ISU”) in Normal, Illinois. The Edge provides investors the unique opportunity to acquire a top performing asset at a growing university with quantifiable upside.
The Edge serves the growing student body at Illinois State University, which welcomed its largest freshman class in 35 years in Fall 2022. Enrollment has increased to 20,683, including an 18% increase in first year students. These demand fundamentals are evident in the off-campus student housing market, which is currently 98% occupied.
Originally constructed in 2004, The Edge has been thoughtfully upgraded in recent years with a welcoming lobby, modern cyber lounge, private study rooms, fully equipped fitness center and yoga studio, new interior furniture, high-speed internet, and more. New ownership will inherit the Property’s stable in-place cashflows while also leaving the opportunity to drive revenue through strategic value-add execution.
The Edge is currently 100% occupied and 79% pre-leased for the 2023-2024 academic year inclusive of 7.7% rent growth as of May 16th, 2023.
- Unmatched Performance - The Edge is currently 100% occupied for the 2022- 2023 academic year and achieving 7.7% year-over-year effective rent growth during preleasing for the 2023-2024 academic year.
- Superior Upkeep with Minimal Deferred Maintenance - Ownership has spent over $1 million on offensive capital improvements including full renovations of the clubhouse, fitness center, and business center, as well as upgraded unit furniture and common area lighting and painting.
- Strong Operating History - The Edge has achieved 5.9% annual effective rent growth over the last three academic years. During that time, occupancy has remained at ~100%, signaling significant rent growth can be achieved without impacting occupancy levels.
- Value-Add and Business Plan Flexibility - A new investor can enjoy the Property’s stable cashflows and superior bill of health and pursue several opportunities to boost cashflows and asset value under their ownership.
- Exceptional Supply & Demand Fundamentals - In Fall 2022, the University welcomed its largest Freshman class in more than three decades, representing an 18% increase in freshman enrollment year-over-year. Despite the remarkable demand fundamentals, there are no off-campus student housing properties in the development pipeline.