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.