MIAMI—Where there are commercial real estate opportunities there are always challenges. That holds true even in the white hot student housing sector. 

GlobeSt.com caught up with Andrew Stark, CEO of Campus Evolution Villages, to talk about those opportunities and challenges, as well as offer a forecast for the months ahead, in part two of this exclusive interview. You can still read part one: Is There Danger of Student Housing Overbuild?

GlobeSt.com: Where are the opportunities in the student housing sector?

Stark: There are great opportunities in the student housing space, to deliver beautiful, close to campus housing while creating returns for investors.  As the sector continues to grow into itself over the next five to 10 years, there will be a need for discipline by owners and investors to respond to the student and the needs of the university communities they are a part of. 

The sector today is so highly fragmented that the top 10 owner-managers, including the public companies control less than 7% of the total bed supply. This is a sector ripe for new sector leaders—not merely aggregators and consolidators, but those who lead with a difference.

GlobeSt.com: What are the challenges in the student housing sector? 

Stark: We are always focused on over-development and challenges that arise from the quick develop and sell formula some have pursued over the past few years in a few markets—limited, but always keeping an eye out. Understand university growth and supply and demand, simple and basis—but let's not become the next homebuilding sector of 2007. 

This is a management intensive business, so the right people on the ground are the key and so always have to be on the lookout for standout for great people, be slow to hire and hire for talent and personality and drive. People first.

GlobeSt.com: What's the outlook for the rest of the year? Any major changes coming down the pike?

Stark: We have seen the public student housing companies pull back on their acquisition spree. They will be back, perhaps at a more restrained pace and appetite.  The latter part of 2013 and 2014 has seen some slowing in activity and perhaps even some price expectations. 

We were very active in 2013 in all-priced acquisitions and as the bid-ask tightens later this year, perhaps aster summer closes out, we expect to be active. The changes coming, and are already being seen, will be in strike pricing. We also anticipate new development starts to slow a bit.