– Proven Occupancy and Rate Performance
Over the last four previous academic years, Saga has achieved 100% occupancy. The Property is currently 97% occupied while also achieving ~9.14% YoY base rent growth. Saga achieved 7.6% and 13.1% base rent growth for AY 22-23 and AY 23-24, respectively.

– Central Pedestrian Location
Located pedestrian, just 0.05 miles to the Northwest edge of the University of Michigan campus, Saga is just steps away from the University of Michigan’s western campus border. Residents at Saga are in close proximity to the University of Michigan Medical Center and the school’s Chemistry and Science research facilities. Saga is pedestrian to several popular off-campus bars and restaurants including The Last Word, Mani Osteria and Bar, the Slurping Turtle, and The Chop House Ann Arbor.

– Strong Demographic Fundamentals
44% of freshman and 50% of all students at the University of Michigan are from out of state or are international students. The student body at UM is also highly affluent, with the median household income at $156,000 which ranks #1 in the nation among public universities. These strong fundamentals further support future rent growth assumptions as these residents will be able to afford the increasing costs of housing in the market.

– ​​​​​​​Potential Value-Add
New ownership would benefit from the implementation and installation of LVT flooring, in-unit washer & dryers, and stainless-steel appliances which are commonplace in the market. We are conservatively projecting a ~15% YOC for the proposed renovations.

– An Increasingly Growing and Selective University
The University of Michigan has experienced record enrollment growth over the last few years, with total enrollment up over 10.3% since 2020. This growth is primarily driven by staggering first-year demand as the University has seen seven straight years of application growth. The University received over 105,000 applications for 2024, driving the acceptance rate to 17.7%, which has trended down -8.8% since 2017.

– $2B University Investment
The University of Michigan is undergoing a massive expansion and revitalization, committing $2B toward its campus’ infrastructure. The university lists eight projects including ground-up developments and the reconstruction of existing buildings. Among these projects includes the development of the 690k SF Michigan Medicine Clinical Inpatient Tower, the 163k SF Leinweber Computer Science and Information Building, and the replacement of the university’s Central Campus Recreation Building.