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.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.