— Flagship University with Excellent Fundamentals
Texas A&M University is one of the leading public research institutions in the nation with the largest system-wide total enrollment in the US at over 79,000 students, 72,560 of those in attendance at the College Station campus. In the past 10 years enrollment has jumped over 30% with Fall 2024 alone growing 2.0% YoY. The staggering growth has not had a negative impact on student quality as 50% of freshman students at the College Station campus were among the top 10% of their graduating high school classes.
— Insufficient On-Campus Housing
Texas A&M’s College Station campus enrollment surpassed the 70,000 student mark for its second consecutive year, however, the count of on-campus housing beds has remained stagnant since 2017 hovering around 11,600 beds and is not forecast to increase significantly. On-campus beds can only hold ~16% of enrollment leaving off-campus housing to hold the remaining 84% of students. With the healthy enrollment growth that the University is experiencing, the trend will only increase.
— Excellent Historical Operations
Since its delivery in 2017, The Heights has benefitted from its status as the best-in-class cottage product in the College Station student housing market. The property achieved 95%+ occupancy every year since AY 22-23 with average annual rent growth of 5%+, inclusive of AY 25-26 projected GPR. In aggregate, rental income will have increased 20% since AY 22-23. Additionally, AY 25-26 leasing velocity significantly outpaced the prior year as the property reached 95% in early April, eight weeks sooner than AY 24-25 leasing, all while achieving 5.2% rental rate growth.
— Location Proximate to Campus
The Heights is located 1.2 miles southeast of Texas A&M University’s campus just off of Harvey Mitchell Parkway – the main drag that runs into campus. Residents who do not wish to bike or drive to their classes have the free option of taking the TAMU Bus, which makes a stop at the edge of the property and will drop residents off in the center of campus. The property is also located within walking distance to an anchor grocery store in H-E-B, and a few bar and food options.
— Value-Add Opportunity
Although the Heights has updated unit finishes and amenities, the opportunity exists for the buyer to achieve outsized revenue growth through a few different initiatives. (1) Currently, 67% of beds at the property are furnished. Residents pay an extra $35/month to rent a furnished unit and, providing the demand is there and if the next buyer chooses, there is opportunity to furnish the remaining beds at the property. (2) The buyer has the opportunity to charge application and administrative fees in the next lease-up cycle as these were implemented at other properties in the Texas A&M market for the AY 25-26 lease-up. (3) The community amenities could be refreshed to enhance value. The amenities are sufficient as noted in the strong preleasing, however, improved community amenities could provide a stronger preleasing velocity permitting a faster increase through the rental rate tiers.
