In fact, says Tamkin, most colleges now see student housing moreas a marketing tool for attracting new students to their campusesthan as a sheer revenue generator; they recognize that modernizedstudent housing can be the determining factor for students tryingto decide which school to attend.

"We've found that today's students want the comforts of home butstill want to feel like they're part of a larger community," saysTamkin. "For example, all of our projects now include amenitieslike private bathrooms, high-speed Internet access, and commonstudy areas. It's a tricky balance between providing qualityfeatures and still keeping the cost in a range that the averagestudent can afford, but we're finding creative ways of meeting bothof these needs."

The returns are similar to other multifamily projects, butrequire higher maintenance reserves due to student activities andare more management intensive. The turnover is greater andoccupancy is sometimes nine months, not the normal 12 months. Thecost per bed as a national average is approximately $35,000, withregional variables being labor and material costs, weather and landsupply. Rents can range from $300 to $700 per bed, per month.