uwg student housing pricing and marketing analysis · additionally, b&d has analyzed uwg’s...

Student Housing Pricingand Marketing Plan

Final Report May 2012

© Brailsford & Dunlavey, Inc. 2012

PREFACE

University of West Georgia Student Housing Pricing & Marketing Plan

Page i

In July 2011, Brailsford & Dunlavey (“B&D”) was asked by the University of West Georgia (“UWG”) to provide a detailed Student Housing Pricing and Marketing Plan (“Plan”) to evaluate the second phase of campus housing development. B&D worked with UWG to evaluate the proposed Phase II implementation strategy by considering rental rate structure and assignment policy adjustments, the Plan’s potential impact on system-wide housing demand, a competitive context analysis of peer institutions, and an update to the system-wide financial model driven by the overall capital budget required for Phase I and II implementation. Additionally, B&D has analyzed UWG’s marketing strategies and made recommendations for an implementable plan that continues to enhance the Housing & Residence Life component of the University going forward. The findings contained herein represent the professional opinions of the Brailsford & Dunlavey Project Team based upon assumptions and conditions detailed in this report. The Project Team has conducted research using both primary and secondary information sources that are deemed to be reliable, but whose accuracy cannot be guaranteed. Throughout the project, Stephen Whitlock, the Director of Housing & Residence Life, was B&D’s primary contact and facilitated communication and coordination with other University administrators. The Project Team would like to acknowledge Mr. Whitlock’s support and thank him for his efforts. B&D would also like to acknowledge the contributions of the following project stakeholders who provided information pertinent to the completion of its analysis:

Mr. James Sutherland, Vice President, Business & Finance Dr. Scot Lingrell, Associate Vice President , Enrollment Management Mr. Brendan Bowen, Assistant Vice President, Campus Planning & Facilities Mr. Justin Barlow, Associate Director, Admissions Mrs. Jami Bower, Assistant Vice President, University Communications and Marketing

The study was produced by B&D’s Project Team comprised of the following individuals:

Brad Noyes, Senior Vice President Peter Isaac, Project Manager Wilson Jones, Project Analyst

TABLE OF CONTENTS


Page ii

SECTIONS 1. Executive Summary 2. Housing Phasing Plan 3. Financial Analysis 4. Market Pricing Analysis 5. Branding & Housing Positioning

APPENDICES

A. Housing Financial Model B. Off-Campus Housing Market Analysis C. Competitive Context Analysis

EXECUTIVE SUMMARY


Page 1.1

INTRODUCTION Brailsford & Dunlavey completed and issued a Housing Market Plan (the “Plan”) in January 2011. In the plan, B&D was asked to quantify demand for additional suite-style housing on the Roberts Field site adjacent to University Suites. Given the number of housing renovation projects under consideration by the University of West Georgia (“UWG”), B&D was asked during the Plan to consider demand for student housing in light of a range of contemplated projects and implementation schedules. The Plan defined development recommendations for the Roberts Field site (known as “Phase I” or “Center Pointe Suites”) and additionally provided preliminary sequencing for a range of potential improvements to the UWG housing system (known collectively as “Phase II”). After the completion of the Plan, UWG commenced the design of Center Pointe Suites, a new 600-bed student housing development, which is scheduled to open Fall 2012. While Center Pointe Suites is being implemented, University administrators turned their attention to the Phase II planning efforts required to address additional latent demand identified as part of the long-term implementation strategy. In July 2011, B&D was asked by UWG to provide a detailed evaluation of the Phase II plan as part of a Student Housing Pricing and Marketing Plan. The balance of this document evaluates the proposed Phase II implementation strategy and considers the following key components:

Rental rate structure and assignment policy adjustments Potential impact on system-wide housing demand Ability to support projected annual debt service driven by the overall capital budget required for project implementation Competitive context analysis of UWG’s statewide and regional, national, and aspirational peer institutions Review and recommendations for the University’s branding campaign and strategies

WORK PLAN B&D’s scope of work and research for this analysis included the following tasks:

A review of UWG’s profile, including an in-depth tour of existing on-campus housing facilities, interviews with administrators, an assessment of enrollment trends, and an analysis of the demographic composition of the University. An update to the off-campus housing market analysis completed in January 2011 to revise rental rates and to ensure that the alternative housing options available to UWG students had not significantly changed. A benchmarking analysis to assess the University’s current pricing structure and strategy for housing relative to its peers and cross-applicant competitors. A system-wide financial analysis that provided a comprehensive overview of the proposed rental rate changes and potential impact of development on the health of UWG’s housing system. An analysis of the University’s current marketing plan to understand how the existing methods and strategies can be improved to attract students to UWG by emphasizing the benefits of on-campus housing.

EXECUTIVE SUMMARY

May 2012 Page 1.2

CRITICAL ASSUMPTIONS This analysis, combined with B&D’s professional judgment, continues to rely upon the same assumptions regarding enrollment growth, housing policies, and planned future projects expressed in the original Plan. These assumptions touch on several factors that have been identified as critical but manageable risks and future decisions for the University:

B&D’s analysis is dependent on UWG meeting enrollment goals. B&D predicts that the greatest vacancy risk is likely to come from sophomores, juniors, and seniors who are considering housing in the affordable off-campus market. The University could lose demand for upper division housing if the on-campus cost of living becomes significantly more than the cost of the housing offered by the private market. The implementation of Phase II is designed to help reduce the risk of vacancy from this sub-population. The University should carefully manage the design of future projects. These projects are important recruitment tools that can also support student success, so buildings must be developed effectively to keep rental rates as low as possible while still remaining financially viable. All rental rates should return to consistent annual increases of 3% per year after the 2013-14 academic year, unless further analysis is conducted.

SUMMARY OF FINDINGS B&D concludes that the implementation of Phase II at UWG is financially viable, has a low risk of vacancy, and will help support UWG’s recruitment and retention efforts by providing enhanced quality-of-life facilities on campus. The Phase II development allows UWG to move toward a more progressive housing model with deliberate housing policy decisions, which will encourage community development, enhance the built environment on campus, and make on-campus apartment units available for sophomores, juniors, and seniors, who are currently moving to the off-campus market. Rental rate increases are required for the housing system to remain financially viable when the additional debt is issued for Center Pointe Suites and the Phase II projects. The rates for suite-style units are increased at a higher percentage than the other unit types based on a comparison of rates at other statewide, regional, and national institutions. The increase in rental rates will make the on-campus housing more expensive than the local off-campus market, but the additional amenities and the reconciliation of supply and demand will help justify the increase in on-campus rates. The University has recently implemented a new marketing strategy known as the “Go West” campaign. The campaign, though only one year old, has already seen success. B&D believes that Housing & Residence Life should use a “Live West” concept that, in addition to the new housing, helps attract students into on-campus housing. B&D believes that Center Pointe Suites and Phase II housing is likely to be successful, but UWG will need to be deliberate about assignment policy, rental rate increases, and the University’s enrollment targets need to be accomplished to maximize the project’s success.

EXECUTIVE SUMMARY


Page 1.3

DETAILED FINDINGS Progressive Housing Model / Assignment Policy Given the first-year live-on requirement, UWG’s current housing supply, and the significant portion of freshmen who expressed interest in remaining in on-campus housing as sophomores, B&D identified an opportunity to strengthen UWG’s housing system by continuing to establish a progressive housing model with the use of a deliberate assignment policy. The progressive housing model works to develop a “freshmen experience” concept that redistributes freshmen demand from apartments to the new semi-suites and renovated traditional-style units from Phase I and Phase II. Freshmen students have a tolerance for suites, semi-suites, and traditional units, and, due to the high-density of those types of buildings, the rental rates required to support the cost of new development would remain affordable. By implementing this strategy, UWG will provide new first-year housing that is appropriate for the desired level of community development, student maturation, and administrator oversight. Additionally, UWG will be able to satisfy its commitment to provide housing for all freshmen without using the on-campus apartment beds or most on-campus suite-style beds. As a result, suites and apartments can be repositioned as “upper division housing” for sophomores, juniors, and seniors, and UWG will be able to more effectively compete with the off-campus housing market. Although a sophomore live-on requirement was considered, B&D found that there is sufficient demand from sophomores, juniors, and seniors, and therefore no requirement is necessary. Additionally, the development of a deliberate first-year housing experience and the availability of desirable upper division housing are likely to help increase the on-campus retention rate, strengthening demand from the sophomores, juniors, and seniors as the plan is executed. After the Phase II implementation is complete, B&D recommends that freshmen are assigned to live in the renovated Bowdon Hall, the Strozier Annex, Gunn Hall, and the new Phase II suite-style development. These residence halls are all located on the east side of campus and, with the development of additional dining and housing administrative offices in close proximity to these facilities, the east side of campus has the opportunity to become branded as a part of the freshman experience. Given the growth of the freshman class, some of the freshman population will need to spill into either the Center Pointe Suites or the University Suites. Since these two residence halls are not located on the east side of campus, B&D recommends that UWG utilizes a living-learning concept or some type of theme housing concept to allow freshman living in the Center Pointe Suites or the University Suites to have a connection to the first-year experience. This plan recommends that sophomores are assigned primarily to the Center Pointe Suites or the University Suites to supplement the beds that are assigned to freshman students. Additional sophomore demand, as well as junior and senior demand, should be accommodated in Arbor View Apartments and Tyus Apartments. B&D recommends that the rental rates at Arbor View and Tyus should be affordable to help UWG compete with the off-campus market. B&D recommends that Arbor View Apartments should be reserved for sophomores, juniors, and seniors and freshmen should not be assigned to Arbor View Apartments.

EXECUTIVE SUMMARY

May 2012 Page 1.4

Phased Implementation B&D, with the support of the University, created the implementation schedule outlined in Exhibit 1.1. The schedule is designed to balance the bed supply and financial resources available to UWG while allowing for continued enrollment growth and rental rate increases to support the housing system.

Exhibit 1.1: Hall Status Matrix & Implementation Schedule

Fall 2011 o Phase I construction begins

Construction of 600 new semi-suite beds o Phase II planning begins

Design of 462 new semi-suite beds at the site of existing Boykin Hall and Downs Hall Design of new student services building comprised of approximately 8,500 square feet of housing administrative offices and 20,000 square feet of dining Design of renovation to Bowdon Hall

Fall 2012 o Phase I opens

Students accommodated in 600 new semi-suite beds o Phase II construction begins

Razing of Boykin Hall and Downs Hall (474 beds off-line) Renovation of Bowdon (309 beds off-line) Construction of 462 new semi-suite beds

Fall 2013 o Phase II opens

Students accommodated in 462 new semi-suite beds Students accommodated in 293 renovated bed at Bowdon Hall Opening of new housing administrative offices and dining facility Permanent closing of Watson Hall (298 beds off-line)

B&D developed a system-wide financial model to analyze the impact that new construction and renovation projects planned in Phase I and Phase II could have on UWG’s system-wide housing performance. Careful financial planning and phasing insured that B&D used conservative capital cost and operating assumptions to maximize the long-term financial viability of the system.

Academic Year (fall year) 2010 2011 2012 2013 2014Residence Hall

Bowdon On-line On-line Under Reno./Constr. Renovated RenovatedBoykin On-line On-line Off-line Off-line Off-lineDowns On-line On-line Off-line Off-line Off-lineGunn On-line On-line On-line On-line On-lineStrozier Annex On-line On-line On-line On-line On-lineWatson On-line On-line On-line Off-line Off-lineTyus On-line On-line On-line On-line On-lineUniversity Suites On-line On-line On-line On-line On-lineArbor View Apartments On-line On-line On-line On-line On-lineNew Semi Suites (FV Phase 1) Off-line Under Reno./Constr. New Housing New Housing New HousingNew Semi Suites (FV Phase 2) Off-line Off-line Under Reno./Constr. New Housing New Housing

Existing Residence Hall Beds 2,796 2,796 2,013 1,715 1,715New/Renovated Residence Hall Beds 0 0 600 1,371 1,371

Residence Beds Available (w/RA's) 2,796 2,796 2,613 3,086 3,086

EXECUTIVE SUMMARY


Page 1.5

As part of the financial analysis, B&D worked with the University to determine a rental rate structure that can support the financial requirements of the housing system without jeopardizing the housing system’s ability to attract students. The rental rate analysis was required because the survey results and focus groups clearly identified price sensitivity as a critical selection factor for UWG students. B&D carefully analyzed rental rate requirements for the next two academic years to ensure that the housing system achieves the required 1.10x minimum debt service coverage as Phase I and Phase II projects are occupied. Housing rates have been carefully analyzed to ensure that the rates charged are capable of supporting the Plan’s annual debt obligations, that rates are appropriate given the total bed supply in any particular year, and that no year-to-year rental rate increase is too large. Exhibit 1.2 provides semester rental rates, by unit type and occupancy type, for the current academic year (2011-12) and the two subsequent academic years (2012-13 and 2013-14).

Exhibit 1.2: On-Campus Rental Rates per Semester through 2013-14

2011-12 2012-13 2013-14Total System Beds 2,796 2,613 3,086

Residence Hall Hall TypeOccupancy

TypeSemester

Rental RateSemester

Rental RateSemester

Rental RateSingle $2,437 $2,562 Off-line

Double $1,950 $2,050 Off-lineSingle $2,437 $2,562 $2,640

Double $1,950 $2,050 $2,112Single $2,437 Off-line $2,899

Double $1,950 Off-line $2,319Single $2,437 Off-line Off-line

Double $1,950 Off-line Off-lineSingle $2,437 Off-line Off-line

Double $1,950 Off-line Off-lineT1 $1,825 $2,050 $2,112T2 $1,950 $2,100 $2,163T3 $1,975 $2,150 $2,215T4 $2,125 $2,200 $2,266T5 $2,300 $2,400 $2,472

Single N/A Off-line Off-lineDouble $2,050 Off-line Off-lineSingle $2,563 $2,662 $2,769

Double $2,050 $2,150 $2,215Single $2,400 $2,805 $2,999

Double $2,150 $2,550 $2,627Single $0 $2,805 $2,999

Double $0 $2,550 $2,627Single $0 $0 $2,999

Double $0 $0 $2,627Single $2,700 $2,800 $2,912

Double $2,500 $2,600 $2,704

Traditional

Traditional

Traditional

Suite

Suite

Traditional

Apartment

Traditional

Traditional

Traditional

Semi-Suite

Semi-Suite

Downs (Renovated Wing)

Strozier Annex

Watson

Arbor View Apartments

Downs

Gunn

Center Pointe Suites

New Semi Suites (FV Phase 2)

University Suites

Bowdon

Boykin

Tyus

EXECUTIVE SUMMARY

May 2012 Page 1.6

While the Fall 2010 student survey and analysis did not test the higher price points listed in Exhibit 1.2, B&D re-analyzed the data to determine if the revised rates would impact demand. Based on the analysis detailed herein, combined with B&D’s professional judgment, the Project Team believes that the proposed increases to the rental rates are supported by the analysis and are not likely to negatively impact demand for beds or UWG’s ability to increase the future overall on-campus housing capture rate. Based on B&D’s conservative approach to modeling the financial performance of UWG’s housing system, the Project Team projects the following key financial metrics over the next 10-years (through 2021-22 school year):

The total bed count is reduced by 183 beds during the 2012-13 academic year due to the renovation of Bowdon Hall, razing of Boykin Hall and Downs Hall, and the proposed construction of 462 semi-suite beds outlined in Phase II. However, through renovation and new construction, the University will increase its total supply of on-campus undergraduate beds by 11% from 2,796 beds to 3,086 beds by 2013-14. System debt service coverage remains above the 1.10x required threshold over the life of the Plan, as mandated by the existing bond requirements. The average projected debt service coverage over the next eleven years is approximately 1.29x, never falling below 1.14x (2014-15) and reaching 1.46x by the end of the projected period (2021-22). The reserve balance is projected to increase by approximately $3,450,000 over the period from approximately $650,000 to nearly $4,100,000.

Exhibit 3.2: Projected System-wide Financial Performance Metrics

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Total Bed Supply (including RA's) 2,796 2,613 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086Total Gross Square Footage 653,970 639,887 754,148 754,148 754,148 754,148 754,148 754,148 754,148 754,148 754,148

Total Revenue $11,731,000 $12,684,000 $15,726,000 $16,130,000 $16,612,000 $17,169,000 $17,741,000 $18,334,000 $18,945,000 $19,582,000 $20,237,000

Total Expense $6,793,000 $6,801,000 $8,196,000 $8,389,000 $8,583,000 $8,784,000 $8,989,000 $9,203,000 $9,419,000 $9,649,000 $9,880,000

Net Operating Income $4,938,000 $5,883,000 $7,530,000 $7,741,000 $8,029,000 $8,385,000 $8,752,000 $9,131,000 $9,526,000 $9,933,000 $10,357,000

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Debt Service

Existing Debt Service $2,337,000 $2,333,000 $2,334,000 $2,308,000 $2,338,000 $2,339,000 $2,341,000 $2,346,000 $2,344,000 $2,345,000 $2,348,000Additional Rents $477,000 $504,000 $534,000 $590,000 $589,000 $617,000 $648,000 $674,000 $708,000 $738,000 $770,000New Debt Service $0 $1,722,000 $3,383,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000

Total Debt Service $2,814,000 $4,559,000 $6,251,000 $6,765,000 $6,794,000 $6,823,000 $6,856,000 $6,887,000 $6,919,000 $6,950,000 $6,985,000Debt Coverage Ratio 1.75 1.29 1.20 1.14 1.18 1.23 1.28 1.33 1.38 1.43 1.48

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Reserves

Reserves/Depreciation $328,000 $166,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000New Hall Reserves $0 $105,000 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350

Total Reserves $328,000 $271,000 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350Cumulative Reserves $656,000 $927,000 $1,278,350 $1,629,700 $1,981,050 $2,332,400 $2,683,750 $3,035,100 $3,386,450 $3,737,800 $4,089,150

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Cash Flow

Total Cash Flow $1,796,000 $1,053,000 $927,650 $624,650 $883,650 $1,210,650 $1,544,650 $1,892,650 $2,255,650 $2,631,650 $3,020,650Cumulative Cash Flow $3,225,000 $4,278,000 $5,205,650 $5,830,300 $6,713,950 $7,924,600 $9,469,250 $11,361,900 $13,617,550 $16,249,200 $19,269,850

EXECUTIVE SUMMARY


Page 1.7

Market Pricing Analysis Although more expensive than the local off-campus market, the current University on-campus housing is more affordable than similar unit types at each type of comparable institution. UWG’s current housing rates are approximately 22% less than the combined average on-campus housing costs for the statewide and regional, national, and aspirant institutions. As expected, this variance is driven up by private institutions and comparable schools included in the research that are located in cities where the cost of living is measurably higher than in Carrollton. However, when UWG rates are compared with their direct competitors located statewide and regionally, the cost of on-campus housing is still approximately 6.5% higher at the peer institutions than at UWG. B&D believes that, despite the competitive off-campus market in Carrollton, the higher price points for on-campus housing at UWG are likely to be demanded given the tolerance for similar rental rates at statewide peer institutions. Marketing & Branding B&D’s analysis suggests that UWG should focus marketing and branding efforts on two distinct sub-populations: 1) potential UWG students who will be incoming freshmen and 2) existing students who will be sophomores, juniors, or seniors. Potential Incoming Freshmen The first challenge that UWG needs to address is the recruitment of students to the campus. As previously mentioned, the success of the plan is partially determined by the University’s projected enrollment growth. The University has addressed this issue from a campus-wide perspective by implementing the “Go West” campaign. Early indicators show that the University’s “Go West” campaign is helping achieve the institution’s goals of increasing public awareness about UWG and helping to grow enrollment. The University of West Georgia is well positioned to increase the on-campus housing population to help mitigate potential vacancy risk associated with current and proposed developments, even as rental rates are increased to meet the University’s directly comparable peer institutions and support debt service. Continuing marketing efforts will help the University meet enrollment forecasts and should allow Housing & Residence Life to increase the on-campus capture rate. B&D believes that Housing & Residence Life should embrace the “Live West” concept, providing an additional point of engagement for students to interact with the spirit of the school. In addition to the “Live West” campaign, B&D believes that the development of a freshmen experience will help UWG market the comprehensive student life opportunities at UWG. The development of Phase II as outlined in this report will include the enhancement of housing facilities and the addition of student-oriented amenities, which will be critical factors for student recruitment. B&D recommends

EXECUTIVE SUMMARY

May 2012 Page 1.8

that UWG supplements the physical components of the freshmen experience with a strong brand that defines the Phase II developments as a destination. Branding Phase II as a freshmen experience and a campus destination will include website enhancements, a change in the path of the campus tour, the development of handouts and brochures, and social media efforts. Finally, B&D recommends that living-learning concepts or theme communities are established for first-year students who desire to engage with a more specific living experience. By providing smaller communities within the larger freshmen experience, UWG should notice an increase in the desirability of their housing offerings. Returning Sophomores, Juniors, and Seniors In addition to recruiting new students to campus, B&D recommends that UWG focuses marketing efforts on keeping existing students in the on-campus housing facilities. The enhanced first-year experience should help encourage students to remain on-campus after their first year since they are likely to make more friends, connect with the campus, and enjoy their experience. To supplement the natural retention of students within campus housing, B&D recommends that UWG provides “goal” housing for sophomores, juniors, and seniors. B&D recommends that UWG restricts Tyus and Arbor View Apartments for sophomores, juniors, and seniors, to give these students a goal. The plan that is outlined in this document reduces the increases on student housing costs for Tyus and Arbor View Apartments, serving as further encouragement for student retention in on-campus housing. B&D also recommends that UWG offers special privileges and policies to these students, such as increase visitation rights, flexible meal plan options, and affordable parking options.

SUMMARY B&D’s analysis suggests that Center Pointe Suites and Phase II housing is likely to be successful, but UWG will need to follow the plan as outlined in this document to improve retention and financial viability through deliberate about assignment policy, rental rate increases, and sustained enrollment growth.

HOUSING PHASING PLAN


Page 2.1

EXISTING UWG ON-CAMPUS HOUSING The University of West Georgia currently offers nine different on-campus housing options for students, including six traditional-style residence halls, two suite-style halls, and one hall in an apartment configuration. With 2,796 beds available in the 2011-12 academic year, UWG’s housing accommodates approximately 30% of all undergraduate students. Although UWG operates an efficient and financially successful housing program, the current housing facilities do not fully satisfy the needs of the University for the following reasons:

Opportunities for living-learning experiences, community development, and collaboration are often missed due to outdated housing configurations. Student housing is nationally recognized as a key recruitment and retention tool, but the configurations of the existing housing facilities at UWG do not allow the University to fully celebrate the strength of its Residence Life program. B&D believes that UWG’s housing facilities have been well maintained by the University, but the buildings are beginning to show signs of their age. Some of the buildings will need to be addressed in the near future, and any lack of substantial maintenance could put the University at risk of high repair costs, unexpected bed revenue loss, and dissatisfied student residents. The current bed mix on campus requires some first-year students to live in on-campus apartments. Placing first-year students in apartments limits their exposure to student community, which could have a negative impact on student development. By placing first-year students in apartments, the University is losing the opportunity to accommodate some upper division students who demand on-campus housing but who typically move to the off-campus market due to limited on-campus availability. The University projects significant enrollment growth over the next 10 years and UWG’s housing program will need to continue to grow to maintain, and possibly increase, its on-campus housing capacity.

Through a detailed market analysis, strategic visioning session, and an assessment of financial feasibility, B&D worked with the University to prepare a long-term strategy for UWG’s housing program. The strategy, as outlined in this document, includes a multi-phased approach that will allow the University to establish a progressive housing model.

PROGRESSIVE HOUSING MODEL The University plans to use a two-phased approach to realign its on-campus housing options into a progressive model. Progressive housing models are typically designed to gradually increase student independence as they mature, to promote community development through deliberate gathering and collaborative spaces within housing facilities, and to allow University administrators the opportunity to more frequently interact with student residents early in their student careers. The phased approach focuses on the development of a “Village” concept, which provides new and renovated first-year housing, additional administrative support, and the creation of a new dining facility in a high-traffic location on campus.


May 2012 Page 2.2

After the Phase II implementation is complete, B&D recommends that freshmen are assigned to live in the renovated Bowdon Hall, the Strozier Annex, Gunn Hall, and the new Phase II suite-style development. These residence halls are all located on the east side of campus and, with the development of additional dining and housing administrative offices in close proximity to these facilities, the east side of campus has the opportunity to become branded as a part of the freshman experience. Given the growth of the freshman class, some of the freshman population will need to spill into either the Center Pointe Suites or the University Suites. Since these two residence halls are not located on the east side of campus, B&D recommends that UWG utilizes a living-learning concept or some type of theme housing concept to allow freshman living in the Center Pointe Suites or the University Suites to have a connection to the first-year experience. In addition to satisfying freshman needs, the repositioning of the first-year experience will also allow UWG to address upper division needs. The progressive housing model will help UWG create an on-campus residential experience that is dedicated to upper division students, encourages community development and housing retention, and effectively competes with the off-campus housing market by providing affordable apartment-style units for upper division students. This plan recommends that sophomores are assigned primarily to the Center Pointe Suites or the University Suites to supplement the beds that are assigned to freshman students. Additional sophomore demand, as well as junior and senior demand, should be accommodated in Arbor View Apartments and Tyus Apartments. B&D recommends that the rental rates at Arbor View and Tyus should be affordable to help UWG compete with the off-campus market. B&D recommends that Arbor View Apartments should be reserved for sophomores, juniors, and seniors and freshmen should not be assigned to Arbor View Apartments. Although a Village concept and the corresponding transition to provide designated upper division housing is projected to satisfy demand trends, the implementation of such a strategy needs to be carefully planned and phased. Phase I of the implementation strategy was approved in 2010 and construction is currently underway and scheduled to open Fall 2012. The University asked B&D to create a proposed implementation schedule for the planning and development of Phase II. The proposed implementation schedule is designed to balance the bed supply and financial resources available to UWG while allowing for continued enrollment growth and rental rate increases to support the housing system. The proposed implementation schedule for the planning and development of Phase II allows the University to continue meeting latent on-campus housing demand while also providing dining and administrative office space in this enhanced area of campus.



Page 2.3

PROPOSED IMPLEMENTATION SCHEDULE B&D and the University analyzed the implementation schedule outlined in Exhibit 2.1. The schedule is designed to balance the bed supply and financial resources available to UWG while allowing for continued enrollment growth and rental rate increases to support the housing system.

Exhibit 2:1 Hall Status Matrix & Implementation Schedule

Fall 2011 o Phase I construction begins

Construction of 600 new semi-suite beds o Phase II planning begins

Design of 462 new semi-suite beds at the site of existing Boykin Hall and Downs Hall Design of new student services building comprised of approximately 8,500 square feet of housing administrative offices and 20,000 square feet of dining Design of renovation to Bowdon Hall

Fall 2012 o Phase I opens

Students accommodated in 600 new semi-suite beds o Phase II construction begins

Razing of Boykin Hall and Downs Hall (474 beds off-line) Renovation of Bowdon (309 beds off-line) Construction of 462 new semi-suite beds

Fall 2013 o Phase II opens

Students accommodated in 462 new semi-suite beds Students accommodated in 293 renovated bed at Bowdon Hall Opening of new housing administrative offices and dining facility Permanent closing of Watson Hall (298 beds off-line)

Academic Year (fall year) 2010 2011 2012 2013 2014Residence Hall

Bowdon On-line On-line Under Reno./Constr. Renovated RenovatedBoykin On-line On-line Off-line Off-line Off-lineDowns On-line On-line Off-line Off-line Off-lineGunn On-line On-line On-line On-line On-lineStrozier Annex On-line On-line On-line On-line On-lineWatson On-line On-line On-line Off-line Off-lineTyus On-line On-line On-line On-line On-lineUniversity Suites On-line On-line On-line On-line On-lineArbor View Apartments On-line On-line On-line On-line On-lineNew Semi Suites (FV Phase 1) Off-line Under Reno./Constr. New Housing New Housing New HousingNew Semi Suites (FV Phase 2) Off-line Off-line Under Reno./Constr. New Housing New Housing

Existing Residence Hall Beds 2,796 2,796 2,013 1,715 1,715New/Renovated Residence Hall Beds 0 0 600 1,371 1,371

Residence Beds Available (w/RA's) 2,796 2,796 2,613 3,086 3,086


May 2012 Page 2.4

HOUSING PHASING PLAN SUMMARY While Phase I is currently being implemented, University administrators have turned their attention to the Phase II planning efforts required to address additional latent demand identified as part of the long-term implementation strategy. The proposed 462-bed, suite style residence hall and renovation of 293 beds at Bowdon Hall will help position the University to capture more students on campus as enrollment and demand continue to increase. The new construction and renovation to these halls will position UWG housing to meet the desired living preferences demanded by today’s students entering their first year at a four-year institution with a residential campus. In order to develop the spectrum of housing and continue to grow enrollment as discussed herein, UWG must focus on the unit types and amenities desired by their target market. Additionally, the proposed construction of a new 20,000 square foot dining facility capable of feeding more than 300 students at a time will provide retail food service for this enhanced area of campus. The proposed dining facility will house an additional 8,500 square feet of proposed administrative offices.

FINANCIAL ANALYSIS


Page 3.1

FINANCIAL OVERVIEW B&D developed an operating financial model that details the revenues, expenses, and debt associated with each residence hall at UWG. The model projects the financial performance of existing facilities, renovated facilities, and new facilities as UWG pursues the implementation of Phase II. The model analyzes projected capital costs, revenues, and operating expenses to forecast the housing system’s financial performance through the 2021-22 academic year. The general economic performance of the Residence Life program is demonstrated by the debt coverage ratio, which requires 1.10x coverage on an annual basis. B&D toured the existing residence halls, used recent campus construction costs, and applied industry standards and its own experience with similar regional projects to produce capital cost assumptions. B&D used operating expense assumptions from actual operating costs at UWG to produce a per-bed expense rate. Additionally, as demonstrated in the assumptions outlined below, B&D worked with the University to determine rental rates that would satisfy this debt service requirement. HOUSING FINANCIAL MODEL ASSUMPTIONS B&D’s system-wide financial model analyzes the impact that new construction and renovation projects planned in Phase I and Phase II could have on system-wide debt. Careful financial planning and phasing insured that B&D used conservative capital cost and operating assumptions to maximize the long-term financial viability of the system. The following information outlines the assumptions used in the model. Capital Cost Assumptions

Using the construction costs included in the Phase I development, the proposed new construction in Phase II assumed constructions costs of $135 per square foot. B&D assumed renovation costs of $90 per square foot at Bowdon Hall. In addition to construction costs, B&D included design fees, furniture, fixtures, and equipment, program management costs, and other soft costs representing approximately a 25% premium to the projected construction costs. Total project costs were inflated at 4.0% on an annual basis. A proposed dining and administrative facility has been included as part of Phase II, of which Residence Life is responsible for the debt associated with 8,500 square feet of administrative space. For the development of administrative space, B&D assumed a construction cost of $200 per square foot plus a premium of approximately 30% to cover additional soft costs. New debt associated with the proposed renovation and construction projects uses a 5.0% interest rate and 30-year term. The debt associated with new construction of Phase II, renovation of Bowdon, and development of administrative space, needs to be supported by the University housing system. University housing is required to operate at a minimum 1.10x debt coverage ratio, making the operating assumptions outlined below critical to the success of Phase II.

FINANCIAL ANALYSIS

May 2012 Page 3.2

Operating Assumptions An average occupancy of 95% was projected for all residence halls. This occupancy figure was supported by historical student housing applicant figures. Rental rates were calculated on a per-semester basis. For the purpose of the model, the semesters were 4.5 months in duration. Rental rate increases for 2012-13 and 2013-14 are detailed throughout the balance of this section of the Plan. Rental rates after the 2013-14 academic year (and all other revenues) are inflated at 3.0% per year. For purposes of being conservative in this analysis, B&D assumed $2,500 per bed in total expense costs. However, a review of recent University housing expenditures, combined with energy efficient systems that have recently been installed on campus, suggest that UWG could find savings in student housing expenses. B&D projects that the efficiencies of the new systems installed on campus could reduce Residence Life’s operating expenses by approximately 20%, reinforcing the conservative nature of the operating expense assumptions. All expenses were inflated at 3.0% on an annual basis.

RENTAL RATE PHASING ANALYSIS B&D worked with the University to determine an appropriate rental rate structure that can support the financial requirements of the housing system without jeopardizing the housing system’s ability to attract students. The rental rate analysis was required because the survey results and focus groups clearly identified price sensitivity as a critical selection factor for UWG students. B&D carefully analyzed rental rate requirements for the next two academic years to ensure that the housing system achieves the required 1.10x minimum debt service coverage as Phase I and Phase II projects are occupied. Housing rates have been carefully analyzed to ensure that the rates charged are capable of supporting the Plan’s annual debt obligations, that rates are appropriate given the total bed supply in any particular year, and that no year-to-year rental rate increase is too large. Exhibit 3.1 provides semester rental rates, by unit type and occupancy type, for the current academic year (2011-12) and the two subsequent academic years (2012-13 and 2013-14).

FINANCIAL ANALYSIS


Page 3.3

Exhibit 3.1: On-Campus Rental Rates per Semester through 2013-14

B&D recommends that University Suites, Center Pointe Suites, and the suites from Phase II are all the same price point once online, as reflected in Exhibit 3.1. To accomplish this pricing structure, the University needs to increase rental rates for double-occupancy units at University Suites by approximately 18.5% next year. Given the limited bed supply in 2012-13 due to renovation and demolition, B&D believes that an 18.5% increase in 2012-13 provides a low risk scenario for the University. The following year, 2013-14, the University can increase double-occupancy rental rates by a more modest 3%. Although B&D recommends significant one-time increases for suite-style units, the rate increases for the Arbor View Apartments is only recommended at 4% per year for the next two years. As indicated in Exhibit 3.1, the cost of Arbor View Apartments will remain more expensive than the suite-style units; however, the gap in cost between Arbor View and the suites is scheduled to decrease significantly. By 2013-14, Arbor View Apartments will be less than 3% more expensive than the suite-style units. The

2011-12 2012-13 2013-14Total System Beds 2,796 2,613 3,086

Residence Hall Hall TypeOccupancy

TypeSemester

Rental RateSemester

Rental RateSemester

Rental RateSingle $2,437 $2,562 Off-line

Double $1,950 $2,050 Off-lineSingle $2,437 $2,562 $2,640

Double $1,950 $2,050 $2,112Single $2,437 Off-line $2,899

Double $1,950 Off-line $2,319Single $2,437 Off-line Off-line

Double $1,950 Off-line Off-lineSingle $2,437 Off-line Off-line

Double $1,950 Off-line Off-lineT1 $1,825 $2,050 $2,112T2 $1,950 $2,100 $2,163T3 $1,975 $2,150 $2,215T4 $2,125 $2,200 $2,266T5 $2,300 $2,400 $2,472

Single N/A Off-line Off-lineDouble $2,050 Off-line Off-lineSingle $2,563 $2,662 $2,769

Double $2,050 $2,150 $2,215Single $2,400 $2,805 $2,999

Double $2,150 $2,550 $2,627Single $0 $2,805 $2,999

Double $0 $2,550 $2,627Single $0 $0 $2,999

Double $0 $0 $2,627Single $2,700 $2,800 $2,912

Double $2,500 $2,600 $2,704

Traditional

Traditional

Traditional

Suite

Suite

Traditional

Apartment

Traditional

Traditional

Traditional

Semi-Suite

Semi-Suite

Downs (Renovated Wing)

Strozier Annex

Watson

Arbor View Apartments

Downs

Gunn

Center Pointe Suites

New Semi Suites (FV Phase 2)

University Suites

Bowdon

Boykin

Tyus

FINANCIAL ANALYSIS

May 2012 Page 3.4

intent for this pricing structure is to keep Arbor View Apartments affordable to compete with the off-campus market. In conjunction with the marketing, branding, and assignment policy recommendations outlined in this report, B&D believes that this pricing strategy will help UWG retain more upper division students in on-campus housing. Although the pricing structure at Arbor View Apartments only increased by 4% per year, Exhibit 3.1 shows a one-time price increase at the Tyus Apartments. Although B&D believes that a one-time price increase at Tyus Apartments could cause some vacancy risk, the University believes that the pricing structure encourages a unique and diverse resident profile in the building, and the University has determined that they will absorb the cost of vacancy in the facility to accomplish their strategic objectives. The financial model shows an occupancy rate of 82% for Tyus. Based on national experience, B&D typically finds that colleges and universities charge a premium of between 20% and 30% for single occupancy bedrooms. As noted in some of the rental rates in Exhibit 3.1, B&D believes that UWG can charge a premium of up to 25% for single-occupancy rooms. While the Fall 2010 student survey and analysis did not test the higher price points listed in Exhibit 3.1, B&D re-analyzed the data to determine if the revised rates would impact demand. Based on the analysis detailed herein, combined with B&D’s professional judgment, the Project Team believes that the proposed increases to the rental rates are supported by the analysis and are not likely to negatively impact demand for beds or UWG’s ability to increase the future overall on-campus housing capture rate. SUMMARY OF FINANCIAL PERFORMANCE B&D has utilized conservative assumptions, industry knowledge, and program management experience to present an updated housing system financial model that addresses proposed rental rate increases, current construction projects, and proposed development in the near future. The key highlights from the plan over the next ten years (through the 2021-22 school year) are as follows:

The total bed count is reduced by 183 beds during the 2012-13 academic year due to the renovation of Bowdon Hall, razing of Boykin Hall and Downs Hall, and the proposed construction of 462 semi-suite beds outlined in Phase II. However, through renovation and new construction, the University will increase its total supply of on-campus undergraduate beds by 11% from 2,796 beds to 3,086 beds by 2013-14. System debt service coverage remains above the 1.10x required threshold over the life of the Plan, as mandated by the existing bond requirements. The average projected debt service coverage over the next eleven years is approximately 1.29x, never falling below 1.14x (2014-15) and reaching 1.46x by the end of the projected period (2021-22). The reserve balance is projected to increase by approximately $3,450,000 over the period from approximately $650,000 to nearly $4,100,000.

FINANCIAL ANALYSIS


Page 3.5

Exhibit 3.2: Projected System-wide Financial Performance Metrics

The capital cost assumptions, rental rate adjustments, and system-wide financial projections outlined herein will likely position UWG housing to meet the required debt service obligations. The Plan is intended to increase on-campus bed count, grow housing reserves, and provide housing with financial flexibility for future projects, all while paying for the housing components of Phase II. UWG housing should improve upon an already stable financial position and have more system resources to address the long-term strategic mission of the University. Please see Appendix A for detailed information, exhibits, and additional analysis from the UWG housing system financial operating model.

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Total Bed Supply (including RA's) 2,796 2,613 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086Total Gross Square Footage 653,970 639,887 754,148 754,148 754,148 754,148 754,148 754,148 754,148 754,148 754,148

Total Revenue $11,731,000 $12,684,000 $15,726,000 $16,130,000 $16,612,000 $17,169,000 $17,741,000 $18,334,000 $18,945,000 $19,582,000 $20,237,000

Total Expense $6,793,000 $6,801,000 $8,196,000 $8,389,000 $8,583,000 $8,784,000 $8,989,000 $9,203,000 $9,419,000 $9,649,000 $9,880,000

Net Operating Income $4,938,000 $5,883,000 $7,530,000 $7,741,000 $8,029,000 $8,385,000 $8,752,000 $9,131,000 $9,526,000 $9,933,000 $10,357,000

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Debt Service

Existing Debt Service $2,337,000 $2,333,000 $2,334,000 $2,308,000 $2,338,000 $2,339,000 $2,341,000 $2,346,000 $2,344,000 $2,345,000 $2,348,000Additional Rents $477,000 $504,000 $534,000 $590,000 $589,000 $617,000 $648,000 $674,000 $708,000 $738,000 $770,000New Debt Service $0 $1,722,000 $3,383,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000 $3,867,000

Total Debt Service $2,814,000 $4,559,000 $6,251,000 $6,765,000 $6,794,000 $6,823,000 $6,856,000 $6,887,000 $6,919,000 $6,950,000 $6,985,000Debt Coverage Ratio 1.75 1.29 1.20 1.14 1.18 1.23 1.28 1.33 1.38 1.43 1.48

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Reserves

Reserves/Depreciation $328,000 $166,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000 $169,000New Hall Reserves $0 $105,000 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350 $182,350

Total Reserves $328,000 $271,000 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350 $351,350Cumulative Reserves $656,000 $927,000 $1,278,350 $1,629,700 $1,981,050 $2,332,400 $2,683,750 $3,035,100 $3,386,450 $3,737,800 $4,089,150

Academic Year (fall year) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Cash Flow

Total Cash Flow $1,796,000 $1,053,000 $927,650 $624,650 $883,650 $1,210,650 $1,544,650 $1,892,650 $2,255,650 $2,631,650 $3,020,650Cumulative Cash Flow $3,225,000 $4,278,000 $5,205,650 $5,830,300 $6,713,950 $7,924,600 $9,469,250 $11,361,900 $13,617,550 $16,249,200 $19,269,850

MARKET PRICING ANALYSIS


Page 4.1

The purpose of the market pricing analysis is to identify and compare the nature of the on-campus housing provided by the University with the local private rental housing market, allowing B&D to examine housing options available to UWG students. These housing options are then compared to student preferences, which are typically tested through a statistically valid survey of the target market. Additionally, B&D was charged with completing a competitive context analysis for selected peer institutions. This analysis will serve as a benchmarking tool to compare UWG’s on-campus housing rental rates to rates at peer institutions across the state of Georgia, the southeast, and the country. An understanding of UWG’s competitive position amongst similar schools will provide context for future decisions regarding housing offerings and the associated cost of living. CARROLLTON, GA OFF-CAMPUS HOUSING MARKET The purpose of the off-campus market analysis is to identify the nature of the private rental housing market, allowing B&D to compare on and off-campus housing options available to UWG students. Through community tours, conversations with University students and administrators, interviews with leasing agents, and general market research, B&D identified properties that were commonly regarded as acceptable student accommodations in close proximity to campus. Specific criteria such as rental rates, unit types, associated property costs, and available amenities were analyzed to better understand why some students choose off-campus properties over on-campus housing options. B&D evaluated twenty properties, all of which were student friendly, attractively priced, and located within an average distance of 2.0 miles of campus, or an average driving time of 4.7 minutes. The average off-campus rental rate including utilities was less than UWG’s on-campus rates. While the on-campus housing offers proximity to campus resources, greater safety, and direct student community, the off-campus market offers benefits such as increased privacy, in-unit kitchens, fewer regulations, and a sense of independent living at affordable prices.

An analysis of monthly rental rates for the off-campus market was conducted to calculate the average cost of living for students in the private market. As shown in Exhibit 4.1, the average off-campus apartment rental rate is approximately $1,817 per semester, or $404 per month, which is 22.3% less expensive than the average cost of on-campus living at UWG ($2,339 per semester or $520 per month). Additional off-campus market data can be found in Appendix B.

Exhibit 4.1: Average Off-Campus Rental Rates per Semester

$1,250

$1,450

$1,650

$1,850

$2,050

$2,250

$2,450

Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom

$2,194 $2,241

$1,660

$1,389

$1,602

Average Off-Campus Monthly Rental Rates (per Semester)

$1,817 Average Market Rate per Person per Semester


May 2012 Page 4.2

There are several housing alternatives available to UWG students who desire to live off campus. B&D’s analysis indicates that some students are willing to give up the proximity to campus resources and direct student community offered by on-campus housing for the cost savings, additional amenities, and increased privacy found in the off-campus market. The more affordable apartments offered in the growing off-campus market are able to draw sophomores, juniors, and seniors away from campus. UWG STUDENT HOUSING PREFERENCES The October 2010 survey was completed by UWG students, and survey results were statistically valid. The intent of the survey was to determine what motivates students to live on campus or move off campus, testing the overall demand for various types of housing and price points. Students were asked to rate factors influencing their decision to live off campus as “Very important”, “Important”, “Unimportant”, and “Very unimportant”. The most influential factor was the total cost of rent and utilities, with 87% of students rating it “Very important” or “Important.” Eighty-five percent (85%) of off-campus students reported a monthly rental payment of $500 or less. Forty-three percent (43%) indicated that they do not pay for utilities separate from their rent payment. Of the students who do pay some or all of their utilities, 55% pay less than $150 per month total for their utilities. Of the survey respondents who intend to live off campus next year, the primary reasons they provided for planning to live off campus were to have more privacy and space. Additionally, some students felt that living off campus was a more cost-effective living situation so they would be able to receive better value for their money than if they were to live on campus. Despite the competitive off-campus rental market and the price sensitivity demonstrated by students, the survey also showed interest in new student housing at UWG provided that the new project addresses students’ desires, preferences, and considerations. Seventy-seven percent (77%) of students expressed an interest in new student housing, provided that their housing preferences were met. The survey also asked students questions relating to the potential development of new housing at UWG and their tolerance for the rental rates required to support these facilities. Thirty-nine percent (39%) of UWG students indicated they were willing to pay a premium in addition to the tested rental rates to live in new or renovated student housing, with the premium ranging from $212 to $518 more per semester.

Exhibit 4.2: UWG Student Willingness to pay a Premium for New Housing

23%

18%

19%

21%

28%

11%

13%

9%

10%

12%

4%

4%

4%

3%

6%

41%

46%

49%

43%

34%

20%

19%

18%

22%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total

Senior

Junior

Sophomore

Freshmen

Willingness to pay a premium to live in new on-campus housing

Yes, 10%-15%

Yes, 15%-20%

Yes, 20%-25%

No

Undecided



Page 4.3

The survey results and B&D’s analysis suggest that, although cost is an important factor, students are also very interested in the development of student community, housing amenities, privacy, and location. UWG could have an opportunity to increase its capture rate if housing was developed or renovated to more closely match the preferences of the students.

COMPETITIVE CONTEXT ANALYSIS The peer institution analysis serves as a benchmarking tool to compare the University of West Georgia’s on-campus housing rental rates to rates at peer institutions across the state of Georgia, the southeast, and the country. An understanding of UWG’s competitive position amongst similar schools will provide context for future decisions regarding housing offerings and the associated cost of living. This information can be used by B&D, in conjunction with the off-campus market analysis, to help inform decisions about rental rate increases and support future rates at planned projects. Through conversations with University administrators, B&D compared a list of statewide and regional, national, and aspirational peer institutions. Using B&D resources and market research, the rental rates at each peer institution were analyzed and compared to current and future UWG on-campus rental rates. The analysis examines rental rates for double and single occupancy units by unit type. As shown in Exhibit 4.3, the University of West Georgia’s on-campus housing is more affordable than similar unit types at each the comparable institution. Most importantly, the University of West Georgia’s on-campus housing rates are approximately 6.5% less per semester than their statewide and regional peer institutions.

Exhibit 4.3: UWG vs. Aspirational Peer Institutions

As shown in Exhibit 4.4, the largest differences in pricing are seen in suite-style housing. UWG students pay approximately 31% less for single-occupancy, suite-style units and 27% less for double-occupancy, suite-style units than they would at other peer institutions.

Exhibit 4.4: Comparison of Rental Rates by Unit Type

$1,500

$2,000

$2,500

$3,000

$3,500

University ofWest Georgia

Statewide &Regional

National Aspirational

$2,339 $2,492

$3,007

$3,466

Peer Institution Rental Rate Summary

2011-12 Housing Rates (per Semester) Traditional Semi-Suite Suite ApartmentSingle Double Single Double Single Double Single Double

University of West Georgia $2,563 $1,975 - - $2,300 $1,996 $2,700 $2,500All Peer Institutions (Average) $3,117 $2,283 $3,608 $2,572 $3,322 $2,729 $3,429 $2,844

Variance (%) (17.8%) (13.5%) N/A N/A (30.8%) (26.9%) (21.3%) (12.1%)


May 2012 Page 4.4

STATEWIDE & REGIONAL COMPARABLE INSTITUTIONS B&D analyzed a total of 12 statewide and regional comparable peer institutions:

Albany State Armstrong Atlantic

Augusta State Clayton State

Columbus State Fort Valley State University

Georgia College & State Georgia Southwestern State

Georgia State Kennesaw State North Georgia Valdosta State

The average rental rate for on-campus housing at these statewide and regional comparable institutions was approximately $2,492 per semester, or 6.5% above UWG’s average on-campus housing rate.

Exhibit 4.5: UWG vs. Statewide & Regional Comparable Peer Institutions

When compared to statewide and regional peer institutions, the most significant variance in pricing by unit type is currently found in suite-style housing. As demonstrated in Exhibit 4.5, rental rates for suite-style housing at UWG are 24.9% less for single-occupancy suites and 15.0% less for double-occupancy suites than similar units at statewide and regional peers. The premium for housing at statewide and regional peer institutions demonstrates support for rental rate increases at UWG. Although UWG needs to be mindful of price sensitivity due to the inexpensive rental rates in the off-campus market, the University is at low risk of hurting their recruitment or retention efforts due to price increases.

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

TraditionalSingle

TraditionalDouble

Semi-SuiteSingle

Semi-SuiteDouble

SuiteSingle

SuiteDouble

ApartmentSingle

ApartmentDouble

$2,563

$1,975

$2,300

$1,996

$2,700

$2,500

$2,057 $1,956

$2,494

$2,164

$3,061

$2,347

$3,107

$2,749

UWG vs. Statewide & Regional Comparable Peer Institutions

University of West Georgia Statewide & Regional



Page 4.5

NATIONALLY COMPARABLE PEER INSTITUTIONS B&D analyzed a total of 19 nationally comparable peer institutions:

Bridgewater State University

California University of Pennsylvania Central Washington University

East Stroudsburg University of Pennsylvania Edinboro University of Pennsylvania

Jacksonville State University Kutztown University

Minnesota State University Northeastern State University

Saginaw Valley State University Salem State University

Slippery Rock University of Pennsylvania Southeastern Louisiana University

University of Central Missouri Southeast Missouri State University

SUNY College at Oswego University of Central Oklahoma

University of Wisconsin - Whitewater The average rental rate for on-campus housing at the selected nationally comparable peer institutions was approximately $3,007 per semester. The average cost of UWG housing is 28.5% below these national schools. As shown in Exhibit 4.6, there are significant pricing gaps for each of the four housing types, with a measurable difference in private or single units. Single, suite style housing at UWG costs $1,126 less per semester than similar housing at their nationally comparable peer institutions. This measurable difference could present an opportunity for UWG to increase the proposed rates at their planned semi-suite projects scheduled to come on-line in 2012-13 and 2013-14.

Exhibit 4.6: UWG vs. Nationally Comparable Peer Institutions

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

$3,000

$3,250

$3,500

$3,750

TraditionalSingle

TraditionalDouble

Semi-SuiteSingle

Semi-SuiteDouble

SuiteSingle

SuiteDouble

ApartmentSingle

ApartmentDouble

$2,563

$1,975

$2,300

$1,996

$2,700

$2,500

$2,999

$2,284

$3,463

$2,585

$3,426

$3,113

$3,429

$2,754

UWG vs. Nationally Comparable Peer Institutions

University of West Georgia National


May 2012 Page 4.6

ASPIRATIONAL PEER INSTITUTIONS B&D analyzed 11 aspirational peer institutions, as selected by University administrators:

Appalachian State University California State University - Chico

Eastern Illinois University James Madison University Montclair State University

Murray State University University of Northern Iowa

University of North Carolina - Wilmington West Chester University of Pennsylvania

Western Kentucky University The average rental rate for on-campus housing at UWG’s aspirational peer institutions was $3,466 per semester. The selected aspirational schools’ average on-campus housing costs are 48.2% higher than UWG’s 2011-12 rental rates. The difference between UWG current on-campus rental rates and their national aspirant schools is inflated due to the high cost of living at two particular comparable institutions – California State University at Chico and Montclair State University. Excluding these two schools, the average rental rate drops to $2,864 per semester for the aspirant peer institutions, or 22.5% higher than UWG’s current housing rates, which is in-line with the cost of living on campus at the national peer institutions analyzed herein.

Exhibit 4.7: UWG vs. Aspirational Peer Institutions

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

TraditionalSingle

TraditionalDouble

Semi-SuiteSingle

Semi-SuiteDouble

SuiteSingle

SuiteDouble

ApartmentSingle

ApartmentDouble

$2,563

$1,975

$2,300

$1,996

$2,700 $2,500

$4,297

$2,611

$4,868

$2,968

$3,481

$2,726

$3,750

$3,030

UWG vs. Aspirational Peer InstitutionsUniversity of West Georgia Aspirational



Page 4.7

MARKET PRICING ANALYSIS SUMMARY There are several housing alternatives available to UWG students who desire to live off campus. B&D’s analysis indicates that some students are willing to give up the proximity to campus resources and direct student community offered by on-campus housing for the cost savings, additional amenities, and increased privacy found in the Carrollton off-campus market. While upper-division students have previously indicated a desire to live on campus, the limited housing supply and more affordable apartments offered in the highly competitive off-campus market are able to draw these students away from campus housing. The University accepts the off-campus market as supplemental housing; however, the investment in on-campus development at the Freshman Village will enhance on-campus living experience and should improve the on-campus retention rate. Additionally, the investment in on-campus development will make the on-campus apartments, which are demanded by upper-division students, available to upper-division students, increasing the on-campus retention rate. The current University on-campus housing is more affordable than similar unit types at each type of comparable institution. UWG’s current housing rates are approximately 22% less than the combined average on-campus housing costs for the statewide and regional, national, and aspirant institutions. As expected, this variance is driven up by private institutions and the comparable schools detailed herein that are located in cities where the cost of living is measurable higher than in Carrollton. When UWG rates are compared with their direct competitors located statewide and regionally, the cost of on-campus housing is approximately 6.5% higher at these peer institutions than currently charged at UWG. Due to the University’s current offerings being underpriced, UWG has the opportunity to increase rental rates as proposed while still remaining competitive with their direct peer group. As indicated by the analysis, the largest disparity in rental rates exists for suite-style units. The University should consider increasing the rental rates for suite-style units more significantly than any other units, since this unit type currently offers the largest difference between UWG and its peers. Despite the competitive off-campus market in Carrollton, on-campus housing at UWG is likely to be demanded even at a higher price point, as long as the new or renovated housing satisfies student preferences.

BRANDING HOUSING & POSITIONING


Page 5.1

The University of West Georgia is positioned to increase the on-campus housing population by growing first-year undergraduate enrollment. This enrollment growth can be partially attributed to the branding effort taking place through the University’s “Go West” campaign. Early performance metrics and indicators show that print, radio, and television advertisements, combined with social media outreach, has helped to expand the footprint of the University and attract new students to the unique experience UWG has to offer. Enrollment growth among various populations seen in 2011 is an early indicator that the University could meet enrollment forecasts to mitigate potential vacancy risk as the on-campus housing supply increases through new development and renovation.

CARVING OUT AN IDENTITY Through local and regional research efforts in the Fall of 2009, the University discovered that the public generally had favorable opinions of UWG; however, it was determined that there was also a lack of awareness of many aspects of the school. Specifically, the marketing team found that the public did not realize the strength of the outstanding faculty, learning opportunities, and diverse thinking that takes place at UWG. Administrators realized that the University had not previously expanded its footprint beyond the western part of the state in a significant way. To remedy this lack of public awareness, University administrators prioritized the creation of a brand identity for UWG. According to Jami Bower, Assistant Vice President for University Communications and Marketing at UWG, administrators understood that “carving out a brand identity for the University would be a real challenge,” but the University committed to making a change in 2010 by launching its inaugural “Go West” campaign.

“GO WEST” CAMPAIGN In November 2010, the University of West Georgia launched their “Go West” campaign to increase brand awareness and to highlight the many things UWG has to offer to prospective students. The new campaign has several key objectives:

Increase undergraduate and graduate enrollment Raise the University’s profile to be more competitive with statewide and regional peer institutions Attract new students from across the state, specifically from the Atlanta area Target specific state high schools to increase awareness of UWG amongst high school students Increase admission standards as enrollment grows Improve retention for existing UWG students

The University’s campaign emphasized that many students believe UWG is the “right fit” for them, where they can find their niche and create their identity. The slogan “Go West” was coined as an ideal fit for the mission of the campaign due to its geographical and thematic applications. “Go West” evokes

BRANDING & POSITIONING

May 2012 Page 5.2

thoughts of exploration, learning, and making a mark. The University sought to spread the message that anything is possible at UWG through a believable and recognizable branding effort. In addition to “Go West” signs and shields on campus, the University utilized many forms of media to spread their message, including television and radio commercials, cinema advertisements, billboards, social media, and print ads, to increase brand awareness. The University placed these ads both locally and across the state of Georgia with the hope of attracting prospective students from Atlanta and beyond. Per local news articles, UWG initially planned to spend over $1.0MM on the campaign.

MEASURING SUCCESS Although the branding campaign is just in its beginning stages, Justin Barlow, Director of Admissions at UWG, indicated that he has “clearly seen a direct correlation between the ‘Go West’ campaign and admissions indicators.” Mr. Barlow went on to say, “There is more of a buzz about UWG. People finally know who we are and see all we have to offer. This marketing campaign has allowed the University a rare chance to reinvent itself.” Fall 2011 admissions numbers show that the University saw a 4.3% increase in first-time applicants and a 7.5% increase in transfer applicants, as demonstrated in Exhibits 5.1 and 5.2. These year-over-year increases are early indicators that the marketing push has reached high school students and college transfers, both of which are key target markets for UWG to increase enrollment.

Exhibit 5.1: UWG First-time Applicants

Exhibit 5.2: UWG Transfer Applicants

Through discussion with administrators, B&D learned that the University has hosted a record number of visitors for the open house sessions for prospective students this fall (2011). Increases of more than 40% have been seen at these information sessions. Launching the campaign in November of last year may have failed to capture certain high-school seniors who had already applied to other institutions or those that didn’t know enough about all UWG has to offer, but University officials believe that these numbers will continue to grow as the “Go West” campaign reaches younger high school students for an extended period of time. In addition to increased volume of applications and campus visitors, the University has been very successful in reaching prospective students through social media campaigns and the “Go West” interactive website. Ms. Bower indicated that the “Go West” Facebook fan page had exceeded their annual goal for “Likes” in just nine months and website traffic had significantly increased in the same

Fall UWG Applicants

Increase / (Decrease)

2007 5,896 -2008 6,208 5.3%2009 6,073 (2.2%)2010 6,361 4.7%2011 6,635 4.3%

Average 6,235 3.0%

Fall Transfer Applicants

Increase / (Decrease)

2007 1,561 -2008 1,412 (9.5%)2009 1,544 9.3%2010 1,511 (2.1%)2011 1,624 7.5%

Average 1.3%



Page 5.3

period. The website presents a user-friendly interface for high school and transfer students to discover exciting opportunities at UWG. Interviews with notable alumni, highlights of campus activities, and direct links for students to apply for admission are all offered through the website.

Exhibit 5.3: “Go West” Interactive Website

In addition to receiving measurable feedback from potential applicants, current UWG students have embraced the branding campaign and provided positive feedback thus far to administrators and local media. This past fall, the student body selected “Go West” as the homecoming theme. B&D also saw several “Go West” shields and banners in the residence halls while on campus. The University has received national recognition for the “Go West” campaign from several organizations affiliated with higher education. In February 2011, UWG was awarded the Best of Show honor at the 26th annual Educational Advertising Awards, a national competition sponsored by Higher Education Marketing Report. Best of Show is the highest award given at the competition and was presented to only 17 institutions nationally from over 1,000 entries submitted this past year. The University also won a Telly Award in March 2011 for its “Go West” branded television commercials. The Telly Awards honor outstanding local, regional, and national TV commercials and programs. UWG and other winners were chosen over 11,000 entries from more than 50 states and many foreign countries. University Communications and Marketing is currently conducting a second round of field research to help measure the success of the first year of the “Go West” campaign. Testing and measuring the reach of the University’s branding efforts will become an annual practice to understand key indicators and measure effectiveness. UWG will continue to consistently layer the “Go West” message through radio and television advertisements in 2012.


May 2012 Page 5.4

HOUSING AS AN ENHANCEMENT TO BRANDING B&D’s analysis suggests that UWG should focus marketing and branding efforts on two distinct sub-populations: 1) potential UWG students who will be incoming freshmen and 2) existing students who will be sophomores, juniors, or seniors. Potential Incoming Freshmen The first challenge that UWG needs to address is the recruitment of students to the campus. As previously mentioned, the success of the plan is partially determined by the University’s projected enrollment growth. The University has addressed this issue from a campus-wide perspective by implementing the “Go West” campaign. As UWG students and administrators have embraced the “Go West” theme, the University has incorporated the rebranding into other aspects of campus life. Housing & Residence Life has incorporated the “Go West” shield and slogan into the residence halls and programming for students. Different groups on campus have also played upon the movement, such as campus food services encouraging students to “Dine West.” As the branding campaign continues into its second year, the University has the opportunity to capitalize upon current momentum and encourage UWG students to “Live West.” The University has an opportunity to showcase housing as the number of high school students coming to Carrollton to visit campus continues to increase. According to students and administrators, on-campus housing at UWG is not currently seen as a “show piece” due to the age of the older and outdated residence halls. Interviews with administrators revealed that tour guides often feel that they lose the group if campus tours start out in one of the older traditional residence halls. The guides complain that these halls are in need of renovation and that the condition of the halls often makes it difficult to recapture the attention of prospective students and parents. Housing & Residence Life has an opportunity to change the current perception by capitalizing on the new semi-suite style housing being built in Phase I and the proposed Phase II development. The Admission’s Office currently has renderings of the proposed construction in their office so that visitors to campus can see the planned development and improvements. These visitors, specifically high school freshmen, sophomores, and juniors, and their parents, are critical to increasing enrollment and meeting program goals going forward. The ability to capture the attention of this group at a young age will benefit the University and continue to raise the University’s profile as compared to other peer institutions across the state in the eyes of prospective students.



Page 5.5

Early indicators show that the University’s “Go West” campaign is helping achieve the institution’s goals of increasing public awareness about UWG and helping to grow enrollment. The University of West Georgia is well positioned to increase the on-campus housing population to help mitigate potential vacancy risk associated with current and proposed developments, even as rental rates are increased to meet the University’s directly comparable peer institutions and support debt service. Continuing marketing efforts will help the University meet enrollment forecasts and should allow Housing & Residence Life to increase the on-campus capture rate. B&D believes that Housing & Residence Life should embrace the “Live West” concept, providing an additional point of engagement for students to interact with the spirit of the school. In addition to the “Live West” campaign, B&D believes that the development of a freshmen experience will help UWG market the comprehensive student life opportunities at UWG. The development of Phase II as outlined in this report will include the enhancement of housing facilities and the addition of student-oriented amenities, which will be critical factors for student recruitment. B&D recommends that UWG supplements the physical components of the freshmen experience with a strong brand that defines the Phase II developments as a destination. Branding Phase II as a freshmen experience and a campus destination will include website enhancements, a change in the path of the campus tour, the development of handouts and brochures, and social media efforts. Finally, B&D recommends that living-learning concepts or theme communities are established for first-year students who desire to engage with a more specific living experience. By providing smaller communities within the larger freshmen experience, UWG should notice an increase in the desirability of their housing offerings. The continued enhancement of the on-campus living experience through redevelopment of existing residence halls and new construction will increase demand for the proposed new beds. Repositioning on-campus housing into a “show piece” of the University can build upon the success of the “Go West” campaign, continue to empower students, and carry on the surge in enrollment forecasted at UWG. Returning Sophomores, Juniors, and Seniors In addition to recruiting new students to campus, B&D recommends that UWG focuses marketing efforts on keeping existing students in the on-campus housing facilities. The enhanced first-year experience should help encourage students to remain on-campus after their first year since they are likely to make more friends, connect with the campus, and enjoy their experience. To supplement the natural retention of students within campus housing, B&D recommends that UWG provides “goal” housing for sophomores, juniors, and seniors. B&D recommends that UWG restricts Tyus and Arbor View Apartments for sophomores, juniors, and seniors, to give these students a goal. The plan that is


May 2012 Page 5.6

outlined in this document reduces the increases on student housing costs for Tyus and Arbor View Apartments, serving as further encouragement for student retention in on-campus housing. B&D also recommends that UWG offers special privileges and policies to these students, such as increase visitation rights, flexible meal plan options, and affordable parking options.

APPE

NDI

X A

– HO

USI

NG

FIN

ANCI

AL M

ODE

L

Univ

ersit

y of

Wes

t Geo

rgia

St

uden

t Hou

sing

Pric

ing

& M

arke

ting

Plan

Pa

ge A

.1

Acad

emic

Year

(fall

year

)20

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

21To

tal B

ed S

uppl

y (in

cludi

ng R

A's)

2,796

2,613

3,086

3,086

3,086

3,086

3,086

3,086

3,086

3,086

3,086

Tota

l Gro

ss S

quar

e Foo

tage

653,9

7063

9,887

754,1

4875

4,148

754,1

4875

4,148

754,1

4875

4,148

754,1

4875

4,148

754,1

48

Reve

nue

Stude

nt Ro

om R

even

ue$1

0,732

,000

$11,6

78,00

0$1

4,573

,000

$14,9

32,00

0$1

5,372

,000

$15,8

83,00

0$1

6,409

,000

$16,9

54,00

0$1

7,517

,000

$18,1

00,0

00$1

8,703

,000

Socia

l Fee

$58,0

00$5

7,000

$69,0

00$7

2,000

$75,0

00$7

8,000

$81,0

00$8

4,000

$87,0

00$9

1,000

$94,0

00Ro

om D

epos

it (pe

r bed

)$5

15,00

0$5

10,00

0$6

32,00

0$6

60,00

0$6

85,00

0$7

14,00

0$7

42,00

0$7

72,00

0$8

01,00

0$8

35,00

0$8

67,00

0Mi

sc. R

even

ue &

Con

feren

ces

$426

,000

$439

,000

$452

,000

$466

,000

$480

,000

$494

,000

$509

,000

$524

,000

$540

,000

$556

,000

$573

,000

Tota

l Rev

enue

$11,7

31,00

0$1

2,684

,000

$15,7

26,00

0$1

6,130

,000

$16,6

12,00

0$1

7,169

,000

$17,7

41,00

0$1

8,334

,000

$18,9

45,00

0$1

9,582

,000

$20,2

37,00

0

Expe

nse

Pers

onne

lPe

rsona

l Ser

vice

$1,22

5,000

$1,23

6,000

$1,50

0,000

$1,54

4,000

$1,59

2,00

0$1

,638,0

00$1

,689,0

00$1

,739,0

00$1

,791,0

00$1

,846,0

00$1

,900,0

00Fr

inge B

enefi

t$2

06,00

0$2

07,00

0$2

52,00

0$2

60,00

0$2

66,0

00$2

75,00

0$2

82,00

0$2

92,00

0$3

01,00

0$3

10,00

0$3

19,00

0Tr

avel

$11,0

00$1

0,000

$13,0

00$1

3,000

$14,0

00$1

6,000

$16,0

00$1

6,000

$16,0

00$1

6,000

$16,0

00Op

erat

ing

Expe

nse

Oper

ating

$2

,148,0

00$2

,165,0

00$2

,627,0

00$2

,708,0

00$2

,788,0

00$2

,872,0

00$2

,959,0

00$3

,048,0

00$3

,139,0

00$3

,233,0

00$3

,330,0

00Op

erati

ng (R

&M)

$178

,000

$180

,000

$219

,000

$226

,000

$233

,000

$240

,000

$246

,000

$255

,000

$261

,000

$270

,000

$278

,000

Unive

rsity

Offs

etPS

Offse

t$1

,650,0

00$1

,615,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00$1

,903,0

00AE

Offse

t$2

1,000

$21,0

00$2

5,000

$25,0

00$2

7,000

$27,0

00$2

7,000

$27,0

00$2

8,000

$30,0

00$3

1,000

Trav

el Of

fset

$1,00

0$2

,000

$2,00

0$2

,000

$3,00

0$3

,000

$3,00

0$3

,000

$3,00

0$4

,000

$4,00

0Op

erati

ng O

ffset

$1,35

3,000

$1,36

5,000

$1,65

5,000

$1,70

8,000

$1,75

7,000

$1,81

0,000

$1,86

4,000

$1,92

0,000

$1,97

7,000

$2,03

7,000

$2,09

9,000

Tota

l Exp

ense

$6,79

3,000

$6,80

1,000

$8,19

6,000

$8,38

9,000

$8,58

3,000

$8,78

4,000

$8,98

9,000

$9,20

3,000

$9,41

9,000

$9,64

9,000

$9,88

0,000

Net O

pera

ting

Inco

me$4

,938,0

00$5

,883,0

00$7

,530,0

00$7

,741,0

00$8

,029,0

00$8

,385,0

00$8

,752,0

00$9

,131,0

00$9

,526,0

00$9

,933,0

00$1

0,357

,000

Acad

emic

Year

(fall

year

)20

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

21De

bt S

ervic

eEx

isting

Deb

t Ser

vice

$2,33

7,000

$2,33

3,000

$2,33

4,000

$2,30

8,000

$2,3

38,00

0$2

,339,0

00$2

,341,0

00$2

,346,0

00$2

,344,0

00$2

,345,0

00$2

,348,

000

Addit

ional

Rents

$477

,000

$504

,000

$534

,000

$590

,000

$589

,000

$617

,000

$648

,000

$674

,000

$708

,000

$738

,000

$770

,000

New

Debt

Serv

ice$0

$1,72

2,000

$3,38

3,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

$3,86

7,000

Tota

l Deb

t Ser

vice

$2,81

4,000

$4,55

9,000

$6,25

1,000

$6,76

5,000

$6,79

4,000

$6,82

3,000

$6,85

6,000

$6,88

7,000

$6,91

9,000

$6,95

0,000

$6,98

5,000

Debt

Cov

erag

e Rat

io1.7

51.2

91.2

01.1

41.1

81.2

31.2

81.3

31.3

81.4

31.4

8

Acad

emic

Year

(fall

year

)20

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

21Re

serv

esRe

serv

es/D

epre

ciatio

n$3

28,00

0$1

66,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0$1

69,00

0Ne

w Ha

ll Res

erve

s$0

$105

,000

$182

,350

$182

,350

$182

,350

$182

,350

$182

,350

$182

,350

$182

,350

$182

,350

$182

,350

Tota

l Res

erve

s$3

28,00

0$2

71,00

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0$3

51,35

0Cu

mulat

ive R

eser

ves

$656

,000

$927

,000

$1,27

8,350

$1,62

9,700

$1,98

1,050

$2,33

2,400

$2,68

3,750

$3,03

5,100

$3,38

6,450

$3,73

7,800

$4,08

9,150

Acad

emic

Year

(fall

year

)20

1120

1220

1320

1420

1520

1620

1720

1820

1920

2020

21Ca

sh F

low

Total

Cas

h Flow

$1,79

6,000

$1,05

3,000

$927

,650

$624

,650

$883

,650

$1,21

0,650

$1,54

4,650

$1,89

2,650

$2,25

5,650

$2,63

1,650

$3,02

0,650

Cumu

lative

Cas

h Fl

ow$3

,225,0

00$4

,278,0

00$5

,205,6

50$5

,830,3

00$6

,713,9

50$7

,924,6

00$9

,469,2

50$1

1,361

,900

$13,6

17,55

0$1

6,249

,200

$19,2

69,85

0

APPENDIX A – HOUSING FINANCIAL MODEL

May 2012 Page A.2

Hard Costs include enclosed building, excavation & site preparation, site utilities & infrastructure, landscaping, and FF&E.

Soft Costs include A/E fees, testing/survey fees, project contingencies, and project management fees.

Project Type Renovation New ConstructionProject Quality Standard Standard

Hard Cost per SF $90 $135Soft Cost per SF $20 $30Soft Cost (as % of Hard Costs) 25% 25%

Total Project Cost per SF $110 $165

Debt Service AssumptionsDebt Service Term (years) 30Debt Service Rate 5.00%Number of Payments per Annum 1Required Debt Coverage Ratio 1.10x

Residence Halls New Semi Suites (FV Phase 2) Bowdon New Dining

Project Type New Construction Renovation New ConstructionProject Quality Standard StandardProject Open Year 2013 2013 2013

Total Project Beds 462 309 0Total Project GSF 112,500 58,797 8,500

Hard Cost per SF $135 $90 $200Total Hard Cost $15,188,000 $5,292,000 $1,700,000Soft Cost % 25% 25% 0%Total Soft Cost $3,797,000 $1,323,000 $510,000Demolition $1,500,000 $0 $0Total Project Cost $20,485,000 $6,615,000 $2,210,000Inflation Allowance $2,558,000 $826,000 $276,000Project Cost at Project Year $23,043,000 $7,441,000 $2,486,000Amount Fundraised / Other Funding $0 $0 $0Amount Financed $23,043,000 $7,441,000 $2,486,000Debt Service Payment at Project Year $1,499,000 $484,000 $162,000

Other AssumptionsReserves/Depreciation (per bed) $206New Reserves (per bed) $175Fundraising / Other Funding 0%Construction Escalation 4%

APPENDIX B – OFF-CAMPUS HOUSING MARKET ANALYSIS


Page B.1

Exhibit B.1: Off-Campus Rental Rates

Exhibit B.2: Off-Campus Application Fees & Security Deposits

Property Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-BedroomApplegate (Campus Walk) - $529 $378 $315 -

Ashley Oaks - - $328 $247 -Azalea Place - - $263 - -Beulah Park - - $448 - -

Campus Quad - - $499 $415 $390Canterbury Heights - - $288 - -

Carrollton Place / Crossing - - - - $390Cedar Street Townhomes - - $284 - -

Cedar Villas - - $325 $310 -Chateau - $440 $263 $222 -

Mandeville Mill Lofts $535 - $350 $233 $238River Place - - $485 - $385

River’s Edge - - - - $334South Ridge Apartments - - $595 - -

The Grove - - $505 $445 -University Lofts - - - - $399

Waverly Apartments $440 $525 $288 - -Westbury Park - - $288 - -

West Ridge Villas - - $398 $283 -Woodglen - - $288 - -

AVERAGE $488 $498 $369 $309 $356

Monthly Rental Rates for a Single-Occupancy Room by Unit Type

Property Application Fee Security DepositApplegate (Campus Walk) $35 $88

Ashley Oaks $25 $655Azalea Place $30 $400Beulah Park $25 $500

Campus Quad $100 $88Canterbury Heights $25 $500

Carrollton Place / Crossing $50 $200Cedar Street Townhomes $0 $500

Cedar Villas $25 $500Chateau $30 $250

Mandeville Mill Lofts $0 $500River Place $25 $200

River’s Edge $25 $500South Ridge Apartments $30 $500

The Grove $100 $250*University Lofts $0 $150

Waverly Apartments $25 $300Westbury Park $0 $500

West Ridge Villas $25 $500Woodglen $25 $300

AVERAGE $30 $357


May 2012 Page B.2

Exhibit B.3: Off-Campus Proximity to UWG Campus

Exhibit B.4: Off-Campus Property Classification

Property Distance to Campus (miles)

Driving Time to Campus

Applegate (Campus Walk) 0.6 2Ashley Oaks 2.4 5Azalea Place 2.6 8Beulah Park 4.0 8

Campus Quad 2.5 6Canterbury Heights 2.7 7

Carrollton Place / Crossing 0.3 1Cedar Street Townhomes 2.4 7

Cedar Villas 2.4 7Chateau 1.0 1

Mandeville Mill Lofts 1.4 2River Place 1.7 4

River’s Edge 1.5 5South Ridge Apartments 0.6 2

The Grove 1.2 2University Lofts 1.0 3

Waverly Apartments 3.4 7Westbury Park 2.1 4

West Ridge Villas 2.0 5Woodglen 3.9 8

AVERAGE 2.0 4.7

Property Student-Focused

Student-Friendly

Applegate (Campus Walk)Ashley OaksAzalea PlaceBeulah Park

Campus QuadCanterbury Heights

Carrollton Place / CrossingCedar Street Townhomes

Cedar VillasChateau

Mandeville Mill LoftsRiver Place

River’s EdgeSouth Ridge Apartments

The GroveUniversity Lofts

Waverly ApartmentsWestbury Park

West Ridge Villas

Woodglen



Page B.3

Exhibit B.5: Off-Campus Amenities

APPENDIX C – COMPETITIVE CONTEXT ANALYSIS


Page C.1

Statewide & Regional Comparable PeersTraditional

SingleTraditional

DoubleSemi-Suite

SingleSemi-Suite

DoubleSuite Single

Suite Double

Apartment Single

Apartment Double

Albany State $2,822 $3,692 $3,593 $3,550Armstrong Atlantic $3,081 $2,949 $3,062 $2,854Augusta State $2,750 $2,225Clayton State $2,706 $2,938Columbus State $2,908 $2,125Fort Valley State University $2,090 $1,940 $2,090 $1,940 $2,239 $2,894 $2,536Georgia College & State $3,240 $2,490 $4,429 $3,571Georgia Southwestern State $2,310 $1,750 $2,350Georgia State $2,015 $3,425 $1,850 $4,046 $2,753Kennesaw State $3,465 $3,330 $2,610North Georgia $2,023 $1,491 $2,756 $2,288 $3,024Valdosta State $1,569 $2,140 $1,623 $2,365 $2,240AVERAGES $2,057 $1,956 $2,494 $2,164 $3,061 $2,347 $3,107 $2,749

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500

$2,057 $1,956

$2,494 $2,164

$3,061

$2,347

$3,107 $2,749

Statewide & Regional Comparable Peer Institutions


May 2012 Page C.2

Nationally Comparable Peer InstitutionsTraditional

SingleTraditional

DoubleSemi-Suite

SingleSemi-Suite

DoubleSuite Single

Suite Double

Apartment Single

Apartment Double

Bridgewater State University $3,275 $3,125 $3,578 $3,310 $3,475California University of Pennsylvania $4,480 $3,196 $3,998 $3,576Central Washington University $2,628 $2,025 $3,049 $2,380 $3,619East Stroudsburg University of Pennsylvania $3,384 $2,256 $3,175 $2,381Edinboro University of Pennsylvania $2,900 $2,600 $3,600 $3,100 $3,900 $3,700 $4,400 $3,400Jacksonville State University $1,690 $2,180 $1,940 $2,220Kutztown University $3,572 $2,858 $3,160 $4,116 $3,316Minnesota State University $3,044 $2,260 $3,772 $2,655 $3,306 $2,875Northeastern State University $1,640 $1,077 $2,618 $2,159 $1,814Saginaw Valley State University $2,960 $2,210 $2,745 $2,045Salem State University $3,945 $3,420 $4,770 $4,095Slippery Rock University of Pennsylvania $2,462 $1,562 $1,643 $3,804 $2,988 $2,624Southeastern Louisiana University $2,070 $1,480 $2,700 $2,070 $3,600 $2,950University of Central Missouri $2,928 $2,328 $3,353Southeast Missouri State University $3,723 $2,973 $5,279 $3,710SUNY College at Oswego $5,195 $3,745University of Central Oklahoma $2,031 $1,577 $2,440 $3,264 $2,831University of Wisconsin -- Whitewater $2,182 $1,568 $2,496 $2,416 $2,084AVERAGES $2,999 $2,284 $3,463 $2,585 $3,426 $3,113 $3,429 $2,754

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500 $2,999

$2,284

$3,463

$2,585

$3,426 $3,113

$3,429

$2,754

Nationally Comparable Peer Institutions



Page C.3

Aspirational Peer InstitutionsTraditional

SingleTraditional

DoubleSemi-Suite

SingleSemi-Suite

DoubleSuite Single

Suite Double

Apartment Single

Apartment Double

Appalachian State University $2,063 $2,200 $2,625 $2,150 $2,250California State University -- Chico $5,413 $4,865Eastern Illinois University $2,097 $5,310 $3,104James Madison University $2,092 $2,092 $2,000 $1,700Montclair State University $4,527 $3,594 $4,868 $4,107 $5,070 $4,301Murray State University $2,950 $1,950 $2,521 $2,521 $2,275University of Northern Iowa $2,589 $4,458 $3,226 $4,656 $3,796University of North Carolina - Wilmington $2,344 $2,664 $2,344 $2,650West Chester University of Pennsylvania $4,000 $4,175 $4,025 $4,290Western Kentucky University $1,903 $2,010AVERAGES $4,297 $2,611 $4,868 $2,968 $3,481 $2,726 $3,750 $3,030

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000 $4,297

$2,611

$4,868

$2,968 $3,481

$2,726

$3,750

$3,030

Aspirational Peer Institutions

uwg student housing pricing and marketing analysis · additionally, b&d has analyzed uwg’s...

Documents