DALLAS-A relatively new concept in off-campus housing is fuelingthe development side as more lenders accept the modern-day“commune” lifestyle. Renting by the bed versus unit bringsflexibility as well as better returns, say Texas executives.

The developer can shave costs by building a four-bedroom unitaround shared living, kitchen and bath areas and student tenantsget higher-end accommodations at a far cheaper monthly rate thantraditional renting.

NorthMarq Capital Inc. says lenders like the new product andIrving, TX-based developer JPI, one of three or four in the nationpushing the notion, like the returns. The best part is it comeswith parental guarantees that rent will be paid for the full year —reducing the risk factor in catering to a single-source base andstudents at that, Tom Lueder, NorthMarq's vice president in Dallas,tells GlobeSt.com. It's also a given that the driving force —established universities — aren't going to pick up and leave.

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