block 43 portfolio

Block 43 PortfolioA 1,176-Bed Community Serving a 50,000+ Student Market in Greensboro, NC

ContactsScott Clifton

O: (312) 300 7286M: (847) 767 [email protected]

Stewart Hayes


Ben Grissim


FINANCING CONTACTJohn Gavigan

T: (704) 526 – 2809M: (336) 260 [email protected]

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

2©2020 Jones Lang LaSalle IP, Inc. All rights reserved.

mailto:[email protected]


Executive Summary THE OFFERINGJones Lang LaSalle, L.P., JLL Real Estate Limited (collectively, “JLL”) proudly presents the Block 43 Portfolio (the “Portfolio”), a 344-unit / 1,176-bed community comprised of the directly adjacent Block 43 Cottages (“Cottages”) & Courtyard (“Courtyard”) apartments in Greensboro, North Carolina. Despite announcing classes to be held primarily online in August, September 2020 occupancy for the market exceeded 96%, highlighting the fundamental strength of the market which has averaged 95% off-campus occupancy since Fall 2017. The assets, which have historically operated as two separate communities, have been combined since current ownership’s acquisition of Courtyard in mid-2019, offering operational efficiencies to a future owner.

The market, which is comprised of 7 higher education institutions, is flagshipped by University of North Carolina at Greensboro (19,764 students) and North Carolina A&T State University (12,754 students), which just announced a 5th consecutive year of record enrollment. Outsized NOI growth is available through completing a renovation program (9% of the units have been upgraded), implementing a water expense savings initiative, and adjusting the cable & internet policy.

OFFERING SUMMARYPROPERTY COTTAGES COURTYARD

ADDRESS 3643 Clifton Rd 3610 Clifton Rd

YEAR BUILT 2011 2009

UNITS / BEDS 176 / 600 168 / 576

BEDS 600 576

CURRENT OCCUPANCY (JUNE 2021) 96% 91%*

PRELEASING (AS OF 6/8/2021) 74% (8% Ahead YoY) 59% (21% Ahead YoY)

AVERAGE UNIT SIZE 1,667 1,183

PARKING SPACES 629 602*Despite manager departure (details available upon request) and 250+ bed NC A&T master-lease being temporarily canceled during critical leasing months, Courtyard was able to achieve nearly full occupancy.


INVESTMENT HIGHLIGHTS � Growth Market – North Carolina was voted the Best State for Business from 2017-20191 and experienced the

3rd-highest population migration by state2 over the last decade.

� Large University MSA – Seven higher education institutions enroll over 50,000 students sit within immediate vicinity of the Portfolio.

� Strong Demand Fundamentals – Off-campus occupancy is projected to be above 95% through 2024 & on-campus occupancy has been nearly 100% since 2012.

� Veritable NOI Upside – In addition to expense savings available by combining the two assets, there is out-sized NOI growth available:

� $65,800 of utility savings available through water overhaul program (quote available).

� $141,000 of cable & internet savings through internet revamping (quote available).

� 91% of units remain unrenovated and are collecting rents below the properties’ best-comparable assets.

� Financing Flexibility – Buyer has an opportunity to acquire the assets with attractive existing financing or place new debt.

1. Forbes

2. U.S. Census Bureau

UNIT MIX SUMMARYCOTTAGES

FLOORPLAN UNIT COUNT BED COUNT SF / UNIT

2X2.5 40 80 1,380

3X3.5 24 72 1,465

4X4 5 20 1,556

4X4 5 20 1,666

4X4.5 102 408 1,833

TOTAL / AVG. 176 600 1,667

UNIT MIX SUMMARYCOURTYARD

FLOORPLAN UNIT COUNT BED COUNT SF / UNIT

2X2 F 34 68 766

2X2 F RENOVATED 11 22 766

2X2 TH 3 6 766

4X4 F 66 264 1,281

4X4 F RENOVATED 1 4 1,281

4X4 TH 5 20 1,281

4X4 TH 29 116 1,454

4X4 TH RENOVATED 19 76 1,454

TOTAL / AVG. 168 576 1,183


Renovation Upside: Common AreaWith only 9% of Portfolio’s units renovated, massive potential upside exists in expanding proven-out renovations to the entirety of both properties.

RENOVATED ORIGINAL

Re-painting of walls, doors, ceilings, & trim

Added barstool chairs & round dining table

Added 49” Smart TV (with router)

Hardwood vinyl in common areas & bathrooms

Replaced coffee table

LED light-fixtures in common areas

Cabinets renovated by Cinch Cabinets Resurfaced countertops


Renovation Upside: Bedroom

Added two two-drawer dresser sets

Added USB desk with chair

Carpets replaced

Added Memory Foam mattresses with new bed frame

RENOVATED ORIGINAL


Fall 2020 marks the 5th consecutive year of record-breaking enrollment at North Carolina A&T State University ("NC A&T") as the university continues striving towards its goal of 14,000 students for Fall 2023. Similarly, University of North Carolina at Greensboro ("UNCG") has seen year-over-year enrollment growth in six of the last seven years. Despite this consistent growth, purpose-built beds for the market supplies less than 58% of the combined enrollment. With no off-campus product projected for either market through 2024, Greensboro market will only improve upon occupancy that averaged above 96% since 2018.

SUPPLY & DEMAND SNAPSHOT � On-Campus Occupancy Has Exceeded 99% Each Year since 2013

� North Carolina Projected to Add 52,000 18-24-Year Olds by 2024

� Beds-Demanded to Exceed Supply by over 15,550 by 2024

Block 43 - Area Supply & Demand

30,000

30,500

31,000

31,500

32,000

32,500

33,000

33,500

34,000

34,500

2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F

UNCG & NC A&T Historical & Projected Enrollment

Actual Enrollment Projected Enrollment

Enrollment Expected to Add over 1,600 Students from 2020 to 2024 with No

Off-Campus Deliveries Expected

KEY SUPPLY & DEMAND METRICS TOTAL UNCG NC A&T

ENROLLMENT 32,518 19,764 12,754

ON-CAMPUS BEDS 8,365 4,903 3,462

OFF-CAMPUS, PURPOSE-BUILT BEDS 10,242 7,098 3,144

OFF-CAMPUS DELIVERIES SCHEDULED 0 0 0


Best-in-Class Community Amenities

� 24-Hour Gym & Fitness Facility

� Resort-Style Pool

� Private Shuttle to Campus

� Fully Equipped Business Center

� Private Study Room

� Renovated Clubhouse

� Full-Size Basketball & Volleyball Court

� TV Lounge with Fireplace & Leather Couches


Top-Quality In-Unit Features

� Fully Furnished with 49’ Smart Television*

� Full Kitchen & Appliances

� Resurfaced Countertops*

� Cinch Kitchen Cabinets*

� Breakfast Bar & Bar Stools*

� LED Light Fixtures in Common Areas*

� In-Unit Washer & Dryer

� In-Unit Air Conditioner

� Walk-in Closets in Each Bedroom

� Memory-Foam Mattresses*

*In renovated units at Courtyard


Jones Lang LaSalle Americas (Illinois), L.P. (“JLL”) has been engaged by the owner (“Aspen Heights Partners”) of the property to arrange the placement of equity. Information concerning the property and Owner described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and JLL, its officers, directors, employees and agents disclaim any liability that may arise from, be based upon or relate to the use of the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change without notice. ©2019. Jones Lang LaSalle IP, Inc. All rights reserved.

ContactsScott Clifton


Stewart Hayes


Ben Grissim


FINANCING CONTACTJohn Gavigan

T: (704) 526 – 2809M: (336) 260 [email protected]



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