We see opportunity as multifamily operators in college towns where demand for higher education greatly outpaces the ability for universities to supply housing for their growing enrollment. What is true for many schools is that expanding construction of on-campus dormitories is not an immediate option in the face of funding and space constraints. It is not uncommon at large public schools for over 70-80% of students to live off-campus in privately run apartment buildings.
Beyond our efforts in identifying attractive markets with solid fundamentals, the Jacobson Company possesses specific management expertise in the areas where student housing operations differ from that at conventional properties. Each building must follow a specific business plan to minimize vacancy and reduce costs in a compressed leasing and turnover window. We have the unique ability to leverage our connections and experience in the entertainment world to create innovative marketing plans and event programming tailored to young people. This Jacobson Company differentiator attracts and retains student tenants, which enables rental increases and higher property values.
Having the know-how to manage the operational challenges allows our company to pursue student housing buildings at higher cap rates and amongst a smaller competitive buyer pool compared to the conventional multifamily market.