The Boulder Student Portfolio is a dynamic set of student marketed assets in Boulder, Colorado. The portfolio is comprised of a duplex (10 beds), a six-unit apartment building (14-beds), and a single-family-home (4 beds) all located directly next to the University of Colorado at Boulder. The University of Colorado has realized severe enrollment growth for many years and has a total enrollment over 34,500 students with a 2018/2019 freshman class of over 6,700 students. The properties not only are walking distance for residents to attend classes, but are within proximity to The Hill, Pearl Street Mall, and 29th Street Mall which are the primary commercial districts of Boulder. Residents also have access to several nearby parks, trails, and other recreational outlets. Renovated properties in both micro locations near the university are achieving significant rent premiums allowing a new owner to step in to improve the assets and grow top-line revenue.
Student housing in Boulder is highly constricted with the university's limited inventory of only 8,040 beds to house students on campus, which leaves an additional roughly 26,470 students left to find off-campus student housing solutions. Severely limited supply in the student market in Boulder has proven assets such as these highly sought out by the CU student body early in the extremely competitive pre-leasing season of Boulder.
Direct student comparable properties that have undergone renovations are achieving monthly rent premiums of $100 to $200 per bed. A new owner will have the ability to take advantage of proven upside by peers, improve units, and aggressively grow the NOI of both assets.
Market occupancy in Boulder is a strong 96% and among the student sector, occupancy is pushing 100%. Rent growth has remained high in the student market for several years achieving average rent growth of 5% annually over the last 5 years.
Since 2018 there has been a city-wide ordinance prohibiting the construction of market-rate and purpose-built student residential apartment units constricting supply in the market. This moratorium has no expiration date as of now priming the property owners to rely on improving existing inventory to meet yield expectations.
All three properties are directly next to the university and have a short walking distance to campus for residents making these properties highly sought out early in the pre-leasing season. The University of Colorado is growing university with total undergrad and graduate enrollment of +-33,000 students. The university is also home to the Colorado Buffaloes that boasts six men’s and nine women’s NCAA Division I athletic programs that compete in the Pac-12 Conference.
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