View Gallery

Location: Harrisonburg, VA
Acquired: January 2003
Type: Student Housing
State: Virginia

All Portfolio Properties

Olde Mill Village Apartments

A 120-unit/480-bed purpose-built student housing project serving James Madison University. The property consists of ten buildings on approximately 10.1 acres. Constructed in two phases with the first phase completed in 1989 and the second in 1991.

Intrinsic Value

Purchase price below replacement cost and appraised value.

Upside Potential

The potential to convert prevailing lease terms from semester-long to 12-month terms provides an opportunity to significantly increase revenue without any capital expenditure.

Property Fundamentals

Proximity to Campus – Located four blocks from JMU, the property is the best-located student housing project in the market. This proximity provides a distinct competitive advantage in that it allows for easy pedestrian traffic to and from the campus.

Market Fundamentals

Limited Supply – JMU’s capacity sufficient to house only 40% of its students. Purpose-built student housing projects (including the property) provide an additional 5,800 beds, with average vacancy rates below 2%. The balance of demand is served by private houses, condos and small apartment complexes.
Barriers to Entry – lack of available zoned land creates a barrier to entry in the market. City planners have indicated any re-zoning requests would be met with strong resistance from the community.