Analysis of Investments

SL West GA Student Housing

Sandlapper Capital Investments

Sandlapper West GA Student Housing is an investment into a garden style student housing apartment complex located in Carrollton, Georgia. The property was built in 2014 and has a total of 160 units and 568 beds. The property is located less than one mile from Western Georgia University. 

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.76%
  • Initial Occupancy 93.70%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.41%
  • Investor Purchase Price $30,050,000
  • Total Offering Size $12,825,000

Loan Information

The loan is for a total of $17,225,000 and is from Fannie Mae. The term is for a total of 10 years with the first 5 years being interest only. When amortization begins it will be based on a 30 year schedule. The interest rate is fixed at a rate of 4.1%.

  • Yr. 1 DSCR 2.25
  • Loan-to-Offering 57.32%
  • Hold Period DSCR 2.47

Tenant Information & Lease Terms

The property is marketed to students at Western Georgia University. Leases for off-campus student housing is generally on a 12 month schedule, however it is possible that students may sub-lease their units during the summer. 
Leases are signed on an individual basis and not per unit. This is why the cost per bed rather than per unit and square foot are more relevant when analyzing student housing.
Parents are required to sign a guarantee of rent payments on leases for students.

Key Positives

  • Enrollment at Western Georgia University has been increasing and this trend is projected to continue.

  • The property is newly built and the newest in the local market. Due to this it should have superior amenities than its competive properties.

  • Due to the new construction there should be a decreased cost of maintenance at the property.

Key Risks to Consider

  • The property has not reached stabilized occupancy even though it has been open since 2014.

  • The rents at the property are the highest in the local market. This could be the reason occupancy has been below stabilized value, however the property is the newest in the market and has the most superior amenities.

  • Population in the 5-mile radius is low, however the enrollment at Western Georgia has been increasing and should boost this figure.

  • The closest major city is over 50 miles away and is Atlanta, Georgia.

Investment Sponsor Information

Sandlapper Capital Investments

According to the sponsor's website: "Sandlapper Capital Investments, LLC (Sandlapper) was created to take advantage of opportunities brought about through the dynamic and ever-changing economic landscape. Often some of the greatest investment opportunities throughout history have been missed by those who lack the agility necessary to seize them. Our experienced team has the skills, tools and resources necessary to identify, analyze and act upon timely opportunities across a vast universe of industries.

Sandlapper principals collectively have decades of experience across a broad range of industries and investment vehicles covering both the public and private markets. These industries include packaged product analysis, commercial real estate equity and debt, tax credits and shelter programs, oil and gas and related industries, equipment leasing, corporate and municipal debt as well as other debt obligations and portfolio management."

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