384 Bed Student Housing Property at the university of Tennessee at Martin. ONLY TRUE BY-THE-BED STUDENT HOUSING IN THE MARKET. PRE-LEASE FOR 2017-18 AHEAD OF LAST YEAR. ADJACENT to Campus. FREE & CLEAR OF EXISTING FINANCING.

OVERVIEW

The Station at Martin consists of 96 units of 4 Bedroom/4 Bathroom apartments for a total of 384 beds. The property is located adjacent to the University of Tennessee at Martin and is the only purpose built student housing property serving the school. The Station underwent a light renovation in 2015 and includes a full suite of amenities. The property is 89% pre-leased for 2017-18 and offers a true value add opportunity.

CAPITAL IMPROVEMENTS

The renovation included a major upgrade in internet speed, improvements to the common areas and amenities, and a full remodel of 22 units. Over $100,000 was spent upgrading the internet to 1 gigabyte per second service, the fastest available in Martin. A number of deferred maintenance items were taken care of, including power washing the buildings, sealing and re-striping the parking lot, and various concrete repairs. The clubhouse & leasing center was remodeled with minor improvements to the pool area and fitness center. Lastly, a total of 22 units were upgraded with new vinyl plank flooring, new black appliances, updated window treatments & new furniture.

UNIVERSITY

The University of Tennessee at Martin is a public four-year university and one of the five campuses of the University of Tennessee system. The school had a Fall 2016 enrollment of 6,705. While enrollment has declined incrementally over the past 5 years, much of this has to do with the fact that the school was placed on accreditation probation stemming from issues dating back to 2012. That probation was lifted in December 2016 and the school has taken steps to regrow the student population, they’re already having success with out of state students, the number of which has grown 47% in the past 5 years. These factors, plus a surging basketball program, should lead to future enrollment gains.

OPPORTUNITY

The Station at Martin represents a true value add opportunity. There is no real competition in the market and even at the depressed enrollment numbers, there are 4,365 students in need of some form of off campus housing. Student attendance appears to be poised for a rebound, pre-leasing is already well ahead of last year with occupancy projected to be in the 88%-90% range. That said, rents are nearly 20% below where they were just two years ago, the market can certainly support it. There is little to no deferred maintenance and the varying apartment tiers mean there is a unit for every budget. Management is being handled third party by a national firm with full payroll and marketing. A local or regional ownership or management group could find significant operational efficiencies. Even with no occupancy or operational improvements, the property should cash flow double digits year 1 with interest only debt service.

University of Tennessee at Martin

  • The University of Tennessee at Martin (UT Martin) is listed as a top university among southern, master’s level institutions in the 2016 edition of “America’s Best Colleges”, compiled by U.S. News & World Report.
  • The National Science Foundation awarded UT Martin a $586,000 grant to fund scholarships and academic support for students studying in science, technology, engineering & mathematics-based areas. The five-year grant is funded through the Division of Undergraduate Education.
  • Facility highlights include a 96,000-square-foot Student Recreation Center; the Paul Meek Library, housing a half-million volumes, a computer lab and Captain’s Coffee; the Boling University Center with the recently upgraded Sodexo Skyhawk Dining Hall, food court, remodeled Barnes & Noble College Bookstore and computer lab.
  • UT Martin’s student athletes are known as the Skyhawks and they are members of the Ohio Valley Conference and compete in the NCAA Division I Football Championship Subdivision.

← Back

Download Documents

Station at Martin

University of Tennessee at Martin

Units  //  96

Beds  //  384

Square Ft.  //  138,624

Site  //  16.30 Acres

Year Built  //  2000 / 2016