Liberty on 8th, Brigham Young University

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The information contained in the following “Case Studies” reflect real estate projects managed by the Principals prior to the launch of ARE, and is provided for reference purposes only to demonstrate the experience of the Principals and type of projects ARE intends to pursue. Past performance is not indicative of future results.

Opportunity

  • Off market opportunity from long term owner and manager who needed to sell for estate planning purposes.

  • A+ location directly across from the main stairs entering BYU’s campus.

  • Below market in place rents. More importantly, the seller still leased with an outdated seasonal structure (fall/winter & spring/summer leases), by converting to 12 month contracts revenue increased substantially.

  • Property was undermanned by non student housing operator and in need of capital improvements.

  • Able to tie into existing brand built through other acquisitions in the market. This was the third “Liberty” in the BYU portfolio (rebrand from “The Elms”) after Liberty Square and Liberty on Freedom.

Investment Strategy Highlights

  • We negotiated into the PSA that the seller would have to allow us to take over leasing during due diligence and allow us to renovate and stage a model unit. Our rental strategy was immediately proved out and we were able to increase pre-lease rents 25% over in place rents before even closing escrow.

  • Renovated 100% of the units in one summer with vinyl plank flooring, new furniture, paint, cabinet faces, formica counter tops, and fixtures.

  • Converted inefficient storage space and a down unit into a new leasing office, gym, community room, additional four bed apartment and study center.

  • Added a new outdoor basketball court, spa, and updated the laundry room with new flooring, paint and washers/dryers that accept credit cards.

  • Focused on implementing new ancillary income such as cable/internet fees, social programming fees and contract transfer fees that the previous owner did not enforce.

Jameson ElderPrevious