are two student housing properties totaling 639 beds in the two best locations at the campus of Western Illinois University in Macomb. Campus Pointe, built in 1972 on the west side of campus, consists of 186 units totaling 320 beds. Campus Manor was constructed in phases between 1960 and 1991 on the east side of campus and is comprised of 170 units and 319 beds.
The properties have an extensive amenity package including fitness center, business/study center, grilling/picnic areas, beach volleyball court, swimming pools, tanning center, free high speed internet, on-site laundry facility and dog park. There are individual and joint lease options, available furniture packages and all-inclusive utility units.
Campus Pointe and Manor are the best located student assets at WIU, each just a block from campus and each with a stop on the Go West Transit bus system. Western’s enrollment is down slightly in Fall 2013 to 9,464 at the Macomb campus but the off campus housing market has stabilized and improved, posting an average occupancy rate of nearly 99% for the 2013-14 school year. Campus Pointe and Manor 2014-15 pre-leasing is up over 150% from 2013-14.
This portfolio offers the opportunity to acquire a critical mass of beds at a stabilizing university with strong cash flow and historical performance. Assumable non-recourse financing at a below market interest rate of 4.54% with 9 years remaining offers the opportunity for solid leverage and superior cash on cash returns going in.
Western Illinois University (WIU) first opened its doors as Western Illinois Normal School in September of 1902. WIU’s main campus is located in the city of Macomb, is spread out over more than a thousand acres, and contains 64 major buildings. Over the past century WIU has earned a strong academic reputation and is renowned for its accessibility and excellent student to faculty ratio. WIU’s recent accolades include being named a “Best Midwestern College” by the Princeton Review, as well as being a top tier “Best Regional University”, by the US News and World Report. WIU also has a satellite campus in the Quad Cities area.
Total enrollment at the WIU-Macomb campus was 10,205 for the Fall of 2013, which is a two-percent increase from the 2012 number of 10,003. While the gain is encouraging, it is still two-percent less than 2011 total enrollment figure of 10,423. Freshman enrollment actually dipped five percent, but this decline was negated by an increase in transfer students and a high retention-rate. In fact, WIU recently received a “Best Practice” award from the Pell Institute, for being among 13 colleges and universities in the U.S. recognized for retention and graduation rates of first-generation and low income students.
Approximately 43% of students at WIU live in one of ten on-campus residence halls. This leaves approximately 6,000 students in need of accommodation, which helps create strong supply and demand fundamentals in the local rental market. In 2010, WIU began its University Housing & Dining Services Master Plan, the aim of which is to renovate and restructure the campus’ residence halls. To date, five of the dormitories have undergone face-lifts, while one, Wertzel Hall, has been demolished and there are plans for the development of a green space in its place.
