TAMPA, FL – Campus Advantage, a leader in student housing, providing property management, consulting, acquisitions, and development services, announced it has closed on the sale of 42North, a 420 bed student housing property located near the University of South Florida campus, through its investment partnership with a large state pension fund.
Campus Advantage acquired 42North in 2014 and successfully executed on its value-add investment strategy, infusing capital to cure deferred maintenance. That, combined with an integrated marketing approach delivered by partner and industry specialist Catalyst, and the company’s proven operations expertise, enhanced the property’s overall appeal in the market. Since its acquisition 36 months ago, Campus Advantage increased Net Operating Income (NOI) by approximately 25.8%, or 5.9% annually compounded.
“Campus Advantage has a well-established track record of creating value by turning around, stabilizing, and optimizing struggling assets, building equity for our investment partners,” said Michael Orsak, Senior Vice President of Investments for Campus Advantage. “As we’ve experienced with other recent dispositions, our solid investment strategy, Students First residence life programming, and involvement in conducting renovations to 42North resulted in a significant increase in the property and community value, making the asset more profitable.”
Since 2007, Campus Advantage has acquired more than $1.25B in student housing assets through its partnerships, with round trips on more than $400M. This has resulted in Campus Advantage’s excellent investment return performance, which since the Company’s inception has exceeded both NCREIF Property Index (NPI) and PREA | IPD U.S. Property Fund Indexes.
“Because of our consistency in maintaining and operating each of our properties to the highest standard, we are able to create an environment that our residents love, resulting in maximum occupancy, rental rate growth and returning resident ratios,” said Mike Peter, President and CEO of Campus Advantage. “Clients know that when you partner with us, you’ll get a great return on investment and we look forward to continuing to provide our proven, value-add expertise to the benefit of future clients and partners.”
This is Campus Advantage’s second successful property disposition within the past month following its recent announcement of the sale of On50, also located near the University of South Florida campus. The company is recycling investment capital gains to support opportunities in tier one markets.