Sunday, 21 Apr 2024

Nelson Partners Sheds Light on the Major Types of Student Housing Properties

Nelson Partners Sheds Light on the Major Types of Student Housing Properties

Student housing is a vital part of student life for any college or university. Wherever there is an institution of higher learning, there also shall be hundred and even thousands of students who will need a place to stay. As college enrollments in the United States keep rising every year, investing in property to rent out to college students can be a very profitable venture. There additionally are multiple companies through which one can make such investments, such as Nelson Partners.  This is a real estate management company that was founded in 2018. They managed over $400 million in assets over the years, with two new offerings near Western Washington University and University of Northern Colorado.

With every passing day, an increasing number of people are investing or considering investing in student housing apartment properties. There are many factors contributing to this trend, including the close proximity to the university campus, shortage and/or outdated dormitories, properties that show signs of recession-resistant characteristics, and more.  Properties managed by companies like Nelson Partners especially prove to be a hassle-free investment for the investors.

College campuses create enormous demand for housing. Right undergrad to graduate students need places today during the school months.  Modern investors can explore multiple types of student housing projects, and ultimately invest in the ones that fit their requirements most impeccably. Popular types of student housing investment properties include:

  • Class-A Student Housing Apartment Properties: Class A student housing strategies involve buying a brand new, purpose-built student housing project that is located near university/college campuses with the aim of enjoying a stable cash flow, as well as the potential for capital gain upon the sale of the property in 5-7 years.
  • Value-Add Student Housing Apartment Properties:  The value-added approach of buying properties involves investments in well-located, older student housing properties that can be refurbished to modern standards. Amenities tend to be added to such properties, so that they are in a position to command higher rents and enjoy stabilized occupancy. The key goal of such properties tends to involve driving the future value of the property for the purpose of providing potential for solid capital gains after the relevant property is sold in around three to seven years. The expected cash flow in such a strategy usually is far more modest and less stable than that in the Class A strategy owing to the interruptions caused by the refurbishment process.

New Construction Student Housing Apartment Properties have also become pretty popular in recent years. Such a development strategy makes use of carefully chosen, well located properties. These properties enjoy a good proximity to campuses. Purpose build housing is developed on these lands, which will have all of the characteristics of a Class A strategy upon completion, which includes high desirability and stable occupancy. People can explore multiple varieties of student housing properties through companies like Nelson Partners.

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