190 Pine Rock Ave
Hamden, CT 06514

RI Marketplace Online Auction October 28-30, 2024
Register to bid on Marketplace:
https://rimarketplace.com/auction/2143/reo-sale-value-add-student-housing-hamden-ct?utm_source=costar

Newmark’s National Student Housing Group and RI Marketplace are pleased to exclusively present the opportunity to acquire Pine Rock Townhomes, a 30-unit, 120-bed student housing community located at Southern Connecticut State University (SCSU). The property is currently 90% leased for the 2024-25 academic year, presenting a compelling investment opportunity in a desirable location.
Pine Rock Townhomes offers a prime location adjacent to SCSU on Pine Rock Avenue, providing students with exceptional convenience and easy access to nearby retail options such as Walgreens, CVS, Acme Shopping Center, Dunkin’ Donuts, Burger King, and a variety of other stores and dining establishments. This advantageous position enhances its appeal to students seeking proximity to both campus and local amenities. Further, the property is located along the university bus line that operates throughout campus and runs five days a week.
In addition to its prime location, Pine Rock Townhomes presents the opportunity to experience significant NOI increase across designated hold periods by improving operational efficiencies, market positioning, and maintaining stabilization. The market for purpose-built student housing is currently undersupplied as there are nearly 54,000 students within the region and only 1,104 off-campus beds, as reported by College House. This leaves a substantial gap with over 52,000 students in need of student housing accommodations. Pine Rock Townhomes stands out as a lower-cost provider compared to its competitors, as it is currently $314 per bed below those of the nearby student competitive properties.
Furthermore, the property presents a significant opportunity for a value-add strategy. Newmark estimates that investing approximately $390,000 ($13,000 per unit) in renovations could yield a $50 per bed premium. The property is also available below replacement cost, enhancing its investment appeal.
Pine Rock Townhomes is ideally situated to benefit from its close proximity to multiple universities, including SCSU, Yale University, Albertus Magnus College, CT State Gateway College, Quinnipiac University, and University of New Haven. The added demand from nearby ancillary higher education institutions helps foster strong supply and demand fundamentals throughout the market.
Lastly, SCSU’s 2023 Comprehensive Plan aims to increase enrollment to 10,200 students by 2028, focusing on enhancing recruitment, supporting students, ensuring affordability, and fostering an inclusive environment.
Pine Rock Townhomes provides investors with the opportunity to acquire a property in a highly undersupplied student housing market, offering substantial potential for increased rental income. By improving operational efficiencies and implementing a value-add strategy, investors can achieve outsized returns and capitalize on the asset's growth potential.

Michael A. Fine
c/o Fisher Auction Company Inc.
License: 0755028