THIRTEEN24
A 302 unit / 641 bedroom student housing community pedestrian to
Western Michigan University in Kalamazoo, Michigan
I NVE STM E N T O VE R V I E W
Thirteen24 Apartments (“Thirteen24”) presents an opportunity to purchase a 302 unit/
641 bedroom student housing community with a tremendous operating history and significant
upside potential. Located two blocks from Western Michigan University (“WMU”) in Kalamazoo, MI,
Thirteen24 has one of the best locations in the market. WMU’s freshman class grew by 3.5% for the
2013-’14 academic year and total enrollment was over 24,000.
Thirteen24 is a highly regarded student housing community as evidenced by its nearly 98% occupancy
in the current academic year. The community was completed in several phases from 1965-2004
and consists of 21 residential buildings and a clubhouse/office/recreation building. While there
have been extensive improvements from 2011-2013, which included upgrades to 115 units, exterior
enhancements to 11 of the buildings, and a new clubhouse, there remain immense opportunities to
increase NOI through additional unit renovations.
The community includes a wide variety of floor plans in studio, one, two, three, four, and six bedroom
unit configurations. Thirteen24 provides its tenants with an extensive amenity package including a
newly renovated clubhouse, one of the best swimming pools in the market, a fitness center, and a
tanning bed.
PROPOSED UNIT
R E N O VAT I O N S C H E D U L E
THIRTEEN24 UNIT MIX
UNIT TYPE
BUILDING
UNIT COUNT
BEDROOM
COUNT
SF/ UNIT
TOTAL SF
EXISTING
RENOVATED
SUMMER
2015
SUMMER
2016
TOTAL
A1
1 Bed/1 Bath
Thirteen24
40
40
552
22,080
-
20
20
40
B1
2 Bed/1 Bath
Thirteen24
185
370
924
170,940
115
35
35
185
S1
Studio
Thirteen24
12
12
360
4,320
-
6
6
12
B15
2 Bed/1.5 Bath
Building I
32
64
1,100
35,200
32
-
-
32
A1S
Studio
Building I
1
1
500
500
1
-
-
1
B1
2 Bed/1 Bath
Village
4
8
900
3,600
4
-
-
4
C2
3 Bed/2 Bath
Village
6
18
1,200
7,200
6
-
-
6
D2.5
4 Bed/2.5 Bath
Village
2
8
1,600
3,200
2
-
-
0
F3.5
6 Bed/3.5 Bath
Village
20
120
2,200
44,000
-
12
10
22
302
641
964
291,040
160
73
71
304
Total/Average
2
I NVE STM E N T O VE R V I E W
Investment Highlights
•
Location – Located in Kalamazoo, Michigan pedestrian to Western Michigan University, with
fall 2013 enrollment of 24,294 students. The community offers convenient access to campus,
shopping, restaurants, entertainment and night life destinations.
•
Amenities – Superior amenities include: one of the best swimming pools in the market,
clubhouse, fitness center, tanning bed, and walking distance to campus.
•
Performance – The portfolio is currently 97.6% occupied, and is trending towards 4% rental
growth for the 2014 -’15 academic year.
•
Value-Add – There are multiple opportunities for a new investor to increase NOI:
•
•
ºº
Continue current renovation plan for the 122 units at Thirteen24 and upgrade 10 units at the
Village. The owner achieved an average 21% rental rate premium for upgraded units for the
2013 -’14 academic year.
ºº
ºº
Conversion of the two 4-bedroom units into 6-bedroom units at the Village.
For the 2014-’15 academic year, ownership has implemented a modest $10-$15 monthly utility
charge. Management has successfully sold this fee as a positive to the renter pool by comparing
it to the full utility expense pass-through at most of the competing properties. A new owner has
the ability to expand this utility fee in subsequent years.
Diverse Unit Mix – The property offers a variety of studio, one, two, three, four, and six bedroom
floor plans.
Financing – Ability to purchase all cash, allowing investors the opportunity to take advantage of
the current attractive financing environment.
THIRTEEN24
INVESTMENT OVERVIEW
Address:
1324 Lafayette Ave.
Kalamazoo, MI 49006
Supporting University:
Western Michigan
University
Year of Construction:
1965-67, 1977, 2003-04
Year of Renovation:
2011-2013
Acres:
15.08
(17.4 units per acre)
Number of Units:
302
Number of Beds:
641
Number of Buildings:
21 residential buildings,
1 clubhouse/office
Number of Stories:
2&3
Avg. Square
Foot / Unit:
964 SF
Parking Spaces:
602
Current Occupancy:
(as of 12/25/13)
98%
Price:
Market
3
lsd
Grand Pre Ave
Alamo Ave
Piccadilly Rd
Maple Hill Dr
Hil
Nicho
Croyden Ave
ale
Ave
Florence St
Park St
e
tnedge Ave
Cro yden A
Croyden Dr
E Frank St
West North St
KALAMAZOO
W Main St
N Lauderdale Dr
Kendall Ave
S Howard St
N Sage St
Ellendale St
Gilk
i s on Ave
Rank
in
Av
e
Lafayette Ave
Austin
Boston
Oa
r
Wait
e Ave
ield D
Sheff
Broadway Ave
Hillcrest
School
Edgemoor Ave
Chevy Chase Blvd
Lorraine Ave
181 West Madison
| Suite 3900
Little Asylum
Lake
Chicago, IL 60602
Parkview Ave Telephone: 312.528.3650
Fax: 312.528.3651
Pikes
Pond
vd
Bronson Bl
Duke St
Atlanta
Frederick Ave
HFF Chicago
ve
Cas
s
nd
kla
d
ling R
Ramb
D
Reed Ave
W Maple St
Dr
Adios Dr
El Rancho Dr
Hawk Dr
S Drake Rd
S 11th St
Westfall Ave
Dobbin Dr
Berkshire Dr
Colonial Trail Way
sin
e
Tali
S Burdick St
Howard St
Windchell Ave
C o n t a c rt
rt
Po
rn
ste
We
Woods
Lake
S Westnedge Ave
Asylum Lake
S Park St
94
Redwood Ave
Merrill St
r
Stadium D
E Walnut St
Arcadia Rd
Rd
Mi
St
g
Lon
iga
ch
W
Oliver
wood Ave
oll
Kn
W
Ave
ity Village Dr
ern
F ra t
n St
Emajea
gan
hi
Mic
ace Blvd
ve
nA
Dormit
Hylle St
Areadia
School
Pine Terr
131
e
Av
Oak St
Thirteen24
94
Davis St
t u m Pkwy
W Michigan Ave
Academy St
d
ory R
o re
b
Linden Grove
Middle School
Ar
W Kalamazoo Ave
rE
Skyridge Ave
Blvd
W Main St
Grove St
Pond D
The Prairies
Golf Club
43
Mountain
Home
Cemetery
Inkster Ave
Whites Rd
E Cork
CHICAGO
Denver
Dallas
Investment Contacts
Florham Park (NJ)
Brian J. Kelly
Hartford
Houston
Managing Director
312.980.3605
bkelly@hfflp.com
Michael D. Higgins
Associate Director
312.528.3657
mhiggins@hfflp.com
Troy A. Manson
Managing Director
214.265.0880
tmanson@hfflp.com
Scott J. Clifton
Analyst
312.300.7286
sclifton@hfflp.com
Indianapolis
Los Angeles
Miami
New York
Orange County (CA)
Orlando
DEBT Contact
Michigan Broker of Record
Trent R. Niederberger
J.M. Harrigan Co.
Associate Director
312.528.3682
tniederberger@hfflp.com
James Michael Harrigan
#6505363810
Philadelphia
Pittsburgh
Portland (OR)
San Diego
San Francisco
Tampa
Washington, DC
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HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described
herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or
completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are
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