The Preiss Company has announced the recent addition of University Suites to its Raleigh portfolio. The company has been hired by property owner Oculus Capital Group to provide third-party management services to the apartment community located 1.5 miles from North Carolina State University. OCG closed on the acquisition in late August 2011.
University Suites is a 518-bed, 136-unit property that offers three-bedroom, three-bathroom and four-bedroom, four-bathroom units. All units have bed-bath parity, full kitchens with hardwood cabinetry, living/dining rooms, and a full-size washer and dryer. OCG plans to invest more than $1 million in property improvements that will include a new shuttle bus, landscaping improvements, and upgrades to the clubhouse and pool area. The property is 98.5% leased for the 2011-2012 lease term.
OCG purchased the property for approximately $19.6 million. The student housing property was constructed in phases from 2001 to 2004. OCG secured $6.8 million in joint venture equity from a private investor and $14 million in senior debt from Fannie Mae to acquire the property. OCG President and Managing Principal, Christopher Feeley, says that OCG is positioning University Suites to be one of the premier student housing properties in the market.
"University Suites was a tremendous acquisition for OCG, and it will yield a terrific return for our investors,” says Feeley. “The improvements we have planned for University Suites will position the property to take advantage of the growing demand within the NCSU student market. We really like the NCSU student housing market and would like to acquire additional properties within this market."
This is the third pairing of The Preiss Company and OCG. The two companies worked together last year when OCG hired The Preiss Company to manage University Village at Slippery Rock—The Preiss Company’s first student housing presence in Pennsylvania. It was based on this success that OCG looked to The Preiss Company when seeking management for University Suites. The Preiss Company is currently pursuing two additional deals with OCG.
The Preiss Company has been offering owners, lenders, and developers of student housing assets a third-party property management platform for several years. Company founder and CEO, Donna Preiss, said that this service offering is in response to a changing economy, as well as the efficiencies and value that aggregate property management can provide. Additionally, third-party property management services is consistent with the company’s overall mission of enhancing the college experience for their student residents by providing a superior environment that promotes both social and academic growth.
“Student housing is still a very fragmented industry”, explains Preiss. “In markets where we currently serve, there are operational efficiencies that The Preiss Company could pass onto other [property] owners. We also have several programs that we could transport to other properties, such as our extensive sports marketing program, our “Green Initiative”, our rent optimization and rent tracking tools, our social activities platform, and our technology platform. With our property management experience and proven results, The Preiss Company is ready and able to provide this valuable service to financial institutions and other owners of student housing.”
University Suites will be managed by Joseph Woo, property manager with The Preiss Company. The property is currently being marketed through a new website, Facebook page, various branding initiatives including a new logo, and participation in the company’s current NCSU sports marketing campaign. Leasing for the 2012-2013 term has already begun and Woo said that the leasing is going “very well”.
“All of the residents are excited about the change in management, as well as all of the changes to the clubhouse,” says Woo. “University Suites already had a great team in place. The Preiss Company has added some extra ‘firepower’ plus our proven management and leasing infrastructure. It’s a combination that’s proven very effective and successful in the past, and we’re confident that University Suites will be no exception.”
About The Preiss Company
With its current pipeline of projects, The Preiss Company (tpco.com) is poised to become the 10th largest student housing owner and provider in the nation. The company is currently the largest woman-owned student housing owner and provider in the country.
About Oculus Capital Group
Oculus Capital Group was formed in early 2010 by the nationally-recognized investment banking and capital markets team of Christopher Feeley and Andrea Akel. OCG provides investment and asset management services to high net worth, family office, and institutional investors. The company’s merchant and investment banking division acts as an investment advisor and financial intermediary on behalf of clients such as owners, developers, investors, institutions, corporations, investment managers, and family offices. OCG can also act in a consulting and advisory capacity to assist a client with capital restructuring needs or the resolution of property debt obligations.