VIDEO: New Kids Make It Tough for Old School Players
LAS COLINAS, TX—The greatest challenge in the student housing business today is wave of new entrants, according to Ari Rosenblum, a principal with Woodlark Cos. In particular, those who aren’t as experienced as established players may overbid just to get into the market, “which leads to properties getting bid up to a level that may not be sustainable.” Rosenblum elaborated on this, and more, in a chat with Sule Aygoren Carranza, editor-in-chief of Real Estate Forum, at the recent RealShare Student Housing 2012 conference.
- With pricing and competition so high, it’s becoming increasingly difficult to find value-add deals or ways to improve NOI in a deal.
- It may be emerging from its status as a niche sector, but student housing remains a very unique business—more akin to hospitality than multifamily.
- Social media is affecting the student housing business on a global level, impacting everything from leasing to operations. It’s an extremely powerful tool, but a dangerous one as well.
- The tier 1 marketplace has been so flooded with institutional money that prices are similar to what you’d pay for properties in New York City.
New Event! Meet Texas' dealmakers at RealShare AUSTIN on June 2.