This portfolio consists of three properties all within one block of the Michigan State University campus in East Lansing, MI, all built by Wolf River Development, LLC. The first property at 128 Collingwood is an old fraternity building originally constructed in 1927. The property was completely gut renovated in 2011 and now contains 14 unique 4 bedroom apartments. 550 Michigan Avenue was built ground up in 2013 and includes 16 different 4 bedroom units and one commercial space. The newest building, 500 Michigan Avenue was just completed in fall 2014 with 39 Studio and 2 Bedroom apartments and a ground floor commercial space.
Units have luxury finishes including granite countertops and GE Profile appliances. All units have ample storage, natural light, unique floor plans and in-unit laundry. There is on-site lot parking at Collingwood and covered parking at both Michigan Avenue buildings. The unit mix caters to a variety of students and each building has a somewhat different character and tenant profile. Each building in the portfolio is in a truly irreplaceable walk to class location. 128 Collingwood is one block from campus in downtown East Lansing. This property is a short walk to the campus bars and shopping along Grand River and Albert Avenue. The two Michigan Avenue buildings are located right next to each other, literally across the street from campus. The Beal Entrance to the university is at the same corner. Class is just steps away and the bars are about a half mile walk.
Michigan State University is a public research university and, with a total enrollment of 50,085, the seventh largest university in the United States. The school is steadily growing, up 1.6% from 2013, and becoming more diverse, there are now 7,883 international students at MSU. Michigan State is a Tier 1, Big 10 University and one of the top public universities in the country.
This rare offering provides the opportunity to acquire a fully stabilized student housing portfolio in three irreplaceable locations at one of the largest universities in the country. These buildings are 100% occupied for the 2014-15 school year and 100% pre-leased for 2015-16. Current ownership is conservative with their rental increases and is focused on full occupancy but still averaged 2.9% rent growth for 2015-16. New construction, turnkey student housing in true walk to class locations is rarely available and these assets could be an ideal generational hold.
Michigan State University began as an agricultural college and was the prototype for 69 land-grant institutions established under the Morrill Act of 1862. Since then it has evolved into one of the premier public research universities in the world. The main campus spans more than 5,200 acres and includes 538 major structures. There are 50,085 students currently enrolled at MSU, and the university boasts a living alumni network of 542,000 graduates worldwide.
MSU has more than 200 programs of undergraduate, graduate, and professional study, through 17 different degree granting colleges. The U.S. News & World Report has ranked MSU’s graduate programs in elementary and secondary education as the 1st in the nation for 20 consecutive years. It also has the #1 graduate programs in nuclear physics and industrial and organizational psychology. Michigan State is the only university in the country with on-campus medical schools graduating allopathic (MD) and osteopathic (DO) physicians, and veterinarians (DVMs).
One of the largest and most significant developments in MSU’s long and storied history just broke ground this March. The Facility for Rare Isotope Beams (FRIB) will be jointly funded by the U.S. Department of Energy Office of Science (DOE-SC), MSU, and the State of Michigan. FRIB is scheduled for completion in 2022 at a projected cost of $730 million. When completed, FRIB will help advance understanding of rare nuclear isotopes and the evolution of the universe. The importance of the presence of such a facility at MSU cannot be overstated, as it will place the university at the forefront of nuclear physics for decades to come.
Michigan State has one of the largest on-campus housing networks in the country. All incoming freshman are required to stay on-campus in one of the 27 undergraduate residence halls and apartments communities. The residence halls are split into five distinct “neighborhoods” and the majority have undergone extensive renovations since 2010. MSU has enough beds to accommodate 15,000 students each year, which leaves more than 35,000 students in need of alternative living situations. The university does not currently have any new on-campus student housing planned.
