Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, today announced that it continues to aggressively add to its student housing portfolio with the acquisition of three properties for an undisclosed amount in joint ventures with a private equity group. The properties include the 4050 Lofts, a 722-bed complex adjacent to the University of South Florida in Tampa; The Avenue, a 358-bed property serving Indiana University-Purdue University Indianapolis (IUPUI); and the 162-bed Campus West at Tyron near North Carolina State University.

In what is shaping up to be a record year for the company, the acquisition marks 10 student housing properties acquired year-to-date. The properties also add two new campuses to the company’s portfolio. The Preiss Company will oversee a renovation/upgrade program at two properties, as well as operate all three complexes.

“We already have achieved our previously stated goal of adding 10 properties in 2016 by the midpoint of the year and continue to have an aggressive appetite for more,” said Donna Preiss, founder and CEO, The Preiss Company. “We remain confident in the student housing outlook and have a very active nationwide pipeline.”

4050 Lofts

Located directly across the street from campus classrooms, the student center, area restaurants and nightlife at 4050 Rocky Circle on 10-plus acres, 4050 Lofts offers three- and four-bedroom units, each with a private bedroom and bath, and common living room and kitchen. The property will undertake a renovation that includes exterior upgrades, updating the swimming pool to include a new grilling station and furniture and individual unit enhancements in each kitchen.

“This is our fourth campus in Florida, a state in which we have considerable experience,” Preiss said. “The University of South Florida serves 42,000 students and continues to seek out-of-state and international students, as well as expand its enrollment of full-time, in-state students. The property’s location, combined with our proprietary, student-centric operating programs, will give 4050 Lofts a competitive advantage.”

Property amenities include a 24-hour Tech Zone with both PC and Apple computers, cyber café with gourmet coffee bar, two swimming pools with outdoor grills and a club house with Wii gaming area and pool table.

The Avenue

Situated at 930 W. 10th Street across the street from the northern edge of the IUPUI campus, The Avenue is the closest student housing complex to the University, is a short walk to the Indiana University School of Medicine and is adjacent to downtown Indianapolis. The campus serves more than 30,000 students offering more than 200 degree programs and houses the nation’s largest nursing school, the country’s second largest medical school, as well as an acclaimed dental school and law school.

The Avenue offers studio, one-, two-, three- and four-bedroom units, each with its own private bathroom. Amenities include on-site parking, salt-water swimming pool with outdoor kitchen and grill, restaurants and retail stores on the approximate three-acre site. The property also features a fully furnished media room, free Wi-Fi access and full-sized washer and dryer in each unit.

The property will undergo a substantial upgrade to include installing new 50-inch televisions in each unit, replacing corridor carpeting, enhancing the pool and pool deck, upgrading the internet service and renovating the clubhouse. A substantial majority of the one- and two-bedroom units will receive new furniture.

“The Avenue is our first student housing investment in Indiana and marks the 27th campus currently in our portfolio,” Preiss noted. “This property enjoys an irreplaceable location in relationship to the campus and, along with our award-winning operating programs, will allow us take a strong leadership position in student housing serving IUPUI.”

Campus West at Tyron

Developed by Preiss in a joint venture in 2014, Campus West at Tyron is located at 5521 Avent Ferry Road on more than 5.5 acres, approximately 1.5 miles from the North Carolina State University Centennial Campus. Rooms feature state-of-the-art finishes, including granite countertops, stainless steel appliances and private bedrooms and bathrooms.

“We have a deep pool of joint investor partners with different investment strategies,” Preiss commented. “We were fortunate that our prior joint venture partner had achieved its investment goals and wanted to harvest its returns, while the property matched up well to another investment group’s financial strategy. This is a great property in outstanding physical conditions with high satisfaction ratings from our student lessees.”

Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, today announced that it had formed a joint venture with a private investment group to acquire two student housing complexes in Raleigh, N.C., for an undisclosed amount. The transaction brings to seven the number of properties transacted by Preiss year-to-date. Both student housing units -- the 440-bed College Inn and the 288-bed University Village at 2505 -- will continue to be operated by The Preiss Company.

“Preiss previously was a joint venture partner in these properties,” said Donna Preiss, founder and CEO of The Preiss Company. “Our former partner had achieved its objectives with these assets and wanted to harvest the return on their investment.

“We have a diverse number of strategic partners with different investment criteria. This allowed us to work with another of our investor partners to acquire these assets which still have great upside,” she said.

“Coming into 2016, Preiss set a goal of adding 10 properties,” she noted. “We have the largest pipeline in our history and could exceed that goal by as early as this summer. Based on our current rate of acquisitions, we will have an exceptional year, perhaps a record. There are a large number of properties on the market, ranging from those that would benefit from major renovation/repositioning to those that need more focused management. There also remains opportunities to develop new properties. Financing remains attractive, and we see continued demand growth. We continue to believe this is an excellent time to be investing in student housing.”

Acquired Properties

• College Inn—Located at 2717 Western Blvd, the 440-bed facility is housed in a four-story building on a three-plus-acre-site. Conveniently situated across from North Carolina State’s Main Campus and close to its Centennial Campus, the property features a large club house with a computer lab and study rooms, fitness center and game room. Fully furnished rooms include plank wood floors, washers and dryers.   Preiss will oversee a substantial rooms upgrade of College Inn with an expected start date during the fourth quarter of this year. Elements include new lighting, appliances, cabinets, countertops and furniture. The clubhouse and building exteriors, as well as landscaping, will be enhanced.

• University Village at 2505—Located at 2505 Red Lodge Place, less than a mile from the Centennial Campus, the complex consists of four, four-story buildings housed on approximately nine acres. The gated community has a club house with Internet café, fitness center and self-serve Starbucks coffee bar, as well as a resort-style swimming pool and sand volleyball court. Each fully furnished, four-bedroom suite has a common social area, private bedrooms and bathrooms and walk-in closets. The rooms offer state-of-the-art interior finishes, including stainless steel appliances, granite countertops and plank wood flooring. The property provides a free shuttle to the Main and Centennial Campuses, as well as resident events. University Village 2505 was developed by Preiss in 2012 specifically for student housing.

“Upon completion of the renovation to College Inn, these two complexes will be in excellent physical condition. Both properties will benefit from the significant operational economies of scale we have in Raleigh,” she said. “We own and or operate 14 student housing complexes in the city and work closely with our student residents and North Carolina State University to provide quality housing and a great college experience.”

Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, today announced the acquisition of the 546-bed student housing complex, Campus Edge, in Raleigh, N.C., in a joint venture with a private investment group for an undisclosed price. Located at 3551 Cum Laude Ct., Campus Edge is within walking distance to the North Carolina State Centennial campus and approximately two miles from the main campus. The acquisition comes on the heels of the company’s first quarter student housing acquisitions of a three-property portfolio in Boca Raton, Fla., and a transaction in Greensboro, N.C.

“This off-market transaction continues our aggressive growth through both acquisition and third-party management contracts”

“This off-market transaction continues our aggressive growth through both acquisition and third-party management contracts,” said Donna Preiss, founder and CEO, The Preiss Company. “While we have expanded to 23 markets nationwide, we continue to look for in-fill opportunities in existing markets.”

“Raleigh is our headquarters city and we have unparalleled expertise here. This is our 14th property in the market which gives us tremendous economies of scale, supported by a deep, experienced infrastructure. Our national footprint exposes us to new practices and opportunities. However, North Carolina remains an important market. We are the largest student housing provider in the state, as well as at NCSU. We see continued opportunity throughout North Carolina and have excellent relationships with the leading colleges and universities,” she added.

Preiss will commence an extensive $2.2-million renovation this year, which the company expects to complete ahead of the 2017 – 2018 school term. The project includes fully renovating the clubhouse and significant upgrades such as new flooring, countertops, upgraded black appliances and lighting in a substantial number of the units.

Campus Edge consists of 13, two- and three-floor, garden-style buildings situated on a 25-acre landscaped setting. Amenities include a computer lab, resort-style swimming pool, fitness center, tanning bed, volleyball and basketball courts, Dog Park, clubhouse game room and car wash area. Furnished units feature nine-foot ceilings, patios or balconies, all appliances, full-sized washers and dryers, private bathrooms, walk-in closets, monitored intrusion alarms, extended basic cable and high speed internet. Unfurnished units, approximately 12 percent of inventory, also are available.

The complex is the closest garden-style property to the Centennial Campus and the only one that offers one-bedroom units south of the main campus. A city bus line stops directly in front of Campus Edge providing fast, easy access to both the main and centennial campuses.

Acquisition Opportunities

“Interest rates remain at low levels which has a positive effect on deals ‘penciling out,’” Preiss said. “However, attractive financing is only part of the equation. The ability to improve operations, a core Preiss strength, is an equal component in generating superior returns. A significant number of properties on the market today often are for sale because they lack experienced management. Student housing operations arguably are the most difficult of multi-housing types to manage. It is more hands-on and requires more sophisticated systems and programs to optimize margins and high student satisfaction.”

Preiss noted that the company and its investment partners continue to focus on properties that can benefit from significant upgrades, such as Campus Edge, as well as properties that have upside by improving operations. “We also continue to have interest in development and currently are working on a core project in Raleigh, N.C. Our acquisition pipeline remains quite robust, and we have the capacity, infrastructure and appetite to continue to add a significant number of properties to both our owned and managed portfolios.”