Stadium View Student Housing (Demo)

A 40-bed purpose-built student property four blocks from campus, leased by the bed with parental guarantees. Pre-leasing has run above 95% for three consecutive years and the university has grown enrollment every year since 2019. At a 7.0% going-in cap and 1.45x DSCR, the property produces a 9.4% cash-on-cash return without assuming rent growth beyond 3%.

Student housing income is concentrated in one leasing season — a weak pre-leasing year cannot be fixed mid-term. New purpose-built supply near campus is the biggest threat to both rents and the exit cap. Turnover costs are higher than conventional multifamily: the model carries $450 per bed per year and that can run over after a rough tenant year.

Five-year hold, leased by the bed at $1,170 per bed per month. 8% economic vacancy including collection loss, 3% rent growth, 3.5% expense inflation. 75% LTV at 6.5% fixed, 30-year amortization, one year interest-only. Exit at a 7.25% cap with 2% cost of sale.