Overview
Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present the Salisbury Campus Apartments (the “Property”), a five-building, 85-unit / 290-bed student housing community that serves Purdue University (“Purdue” or the “University”). The Property offers a mix of floorplans ranging from Studio, 2-bedroom, 3-bedroom, and 4-bedroom units. The Property is uniquely positioned directly next to the heart of Purdue’s campus and main retail corridor.
Fall 2022 enrollment of 50,844 students marks Purdue’s eighth consecutive year of record-breaking enrollment. Contributing to Purdue’s ascending demand are its Power 5 athletic teams, distinguished academic offerings, and its tuition freeze, which is entering its 12th straight year. These remarkable fundamentals have cultivated a fully occupied student housing market that experienced 15% rate growth year-over-year.
The Property is currently 100% master leased to Purdue University through the 2024-2025 academic year. New ownership has the opportunity to immediately recognize stable cashflows with numerous upside opportunities in the near future. Upon expiration of the master lease, new ownership can mark-to-market rates, initiate a value-add campaign to achieve outsized rent premiums, or redevelop the contiguous, 2.5 acre site.
Investment Highlights
- #3 Strongest Student Housing Fundamentals in the Nation – 99% Occupancy for 2023-24 Academic Year, 57% Pre-Leased Occupancy (as of 9/22/23) for 2024-25 Academic Year
- Global Recognition & Appeal – For fall 2023, Purdue received its highest number of applications in school history and was ranked as the #10 public institution in the country. The West Lafayette campus hit a record high enrollment of 52,211.
- Mark-to-Market Opportunity – Direct comparable properties (vintage, location, unit mix, quality) are 50%+ pre-leased, with 25%+ rent growth, for 2024-25 all while leasing at greater than $300/bed/month premiums to the subject 5 buildings. New ownership has an opportunity to mark-to-market rents with minimal capital investments into the properties.
- Value-Add Opportunity – Given the significant increase in the ‘rent ceiling’ in the Purdue student housing market, new ownership has the opportunity to bridge some of the rent gap that exists compared to the top of the market rents by upgrading units. For fall 2024, new assets are achieving rents of $900-1,500/bed/month premiums relative to the subject properties.
- Development Opportunity – The 2.5 acre site sits just 0.25 miles from campus and steps from the main retail corridor, offering a future owner the potential ability to add significant density at highest in the market rents.
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