Regency Consolidated Residential, LLC

Champaign,

Student Housing Market Assessment

Regency Consolidated Residential, LLC selected B&D in 2015 to conduct a market study assessing an opportunity to reposition Dunnhill Apartments—a 186-unit, 316-bed apartment community located near Indiana University Bloomington. Despite the building’s condition and the quality of rental housing in the area, students chose to live in Dunnhill because of its affordability and proximity to athletics and transportation. At the time of the study, the student housing market was in transition. Over 2,000 units had been introduced in the previous 10 years, with 392 more coming on line soon. Importantly, most of this new development was planned to attract the university’s renter population; without continued enrollment growth, adding even more housing would only increase competition among the existing stock. We completed a detailed analysis of the university’s student demographic profile, a market supply analysis of available student housing, and a demand analysis identifying opportunities for the Dunnhill Apartments. Nine properties were identified as comparable to a redeveloped Dunnhill Apartment complex, all of which had been built within the last five years and were near full occupancy. Additionally, all nine properties contained large units, had a premium “feel,” and were located close to entertainment, retail, and foodservice. Our analyses revealed a demand for purpose-built student housing of 350-450 beds and recommended that Regency pursue redevelopment of the Dunhill Apartments, noting that the scale of this project would not only help facilitate change in the immediate neighborhood, but also could compete with newer student housing through more reasonable rents and upgraded amenities. Recommendations for the redeveloped site included:

• One-, two-, and four-bedroom unit types
• Rental rates approximately 10% lower than comparable properties
• Higher-end amenities such as fully-equipped kitchens, in-unit washer-dryer, 24-hour security, a fitness center, and study rooms
• 12-month lease terms