The-U

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2401 Taylor Avenue | Bellingham, WA 98225

1993

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Close to Campus Coffee & Snack Bar Free Printing Bike Storage On-site Laundry Balconies *Select Units Outdoor Spaces & Games Parking Available

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Community Amenities

PROPERTY INFORMATION

LOCATION

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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. © 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.

Brandon Buell

Senior Managing Director – Student Housing 346.444.8982 brandon.buell@berkadia.com

Kevin Larimer

Senior Managing Director - Student Housing 248.341.3305 kevin.larimer@berkadia.com

CHAD BLENZ

BERKADIA STUDENT HOUSING TEAM

CONTACT Info

28411 Northwestern Highway, STE 300 Southfield, MI 48034 Phone: 248.646.7701

Detroit Office

2229 San Felipe Street, Ste 1600 Houston, TX 77019 Phone: 713.974.1300

Houston Office

411 108th Ave NE Suite 1080 Bellevue, WA 98004 Phone: 425.230.2565

Seattle Office

MITCHELL BELCHER

Managing Director 425.891.9594 mitchell.belcher@berkadia.com

JAY TIMPANI

Managing Director 206.999.3206 jay.timpani@berkadia.com

STEVEN CHATTIN

Managing Director 425.269.3826 steven.chattin@berkadia.com

Steve Skok

Managing Director 312.845.5164 | steve.skok@berkadia.com

Mortgage Bankers

Aaron Moll

Director 248.208.0529 | aaron.moll@berkadia.com

Peter Benedetto

Senior Managing Director 248.208.3462 | peter.benedetto@berkadia.com

Significant Value Add Opportunity While current ownership has done a tremendous job maintaining the asset with minimal deferred maintenance, a light cosmetic unit renovation program would allow new ownership to significantly increase rents. The three-bedroom units average only $845 per bed while the market average is $32 per bed higher at $877 and the high rent provider in the market is $154 higher at $999. The four-bedroom units are $18 per bed below the market average and $90 below the market leader. Based on the locational advantages of the asset, this property should easily be able to demand rents above the prevailing market average. The U offers a new owner the opportunity to have the best situated asset in the market, central to the student-focused Happy Valley neighborhood. This asset is being offered with a very attractive going-in yield under their current operation structure. With modest capital expenditure for cosmetic renovation to the interior units, a new owner would realize a double-digit cash yield and a high-teens leveraged IRR. Irreplaceable location across the street from Western Washington University The U is a 1993 vintage asset with an irreplaceable location across the street from Western Washington University (WWU) in Bellingham, Washington. The property’s location on the south end of campus provides a strong locational advantage as this area has become one of the most popular areas for WWU students. Residents of this neighborhood are also within minutes of Fairhaven, the hip, upscale area of downtown Bellingham. Fairhaven attracts students with its many eclectic restaurants, gastropubs, and craft breweries. The U is also proximate to Bellingham Bay and the South Bay Trail that attracts students with biking and walking trails along the water. Bellingham is the 2nd fastest growing city in Washington state Second only to Seattle in population growth in Washington, Bellingham added 4.5% in new residents for 2022. Due to this accelerated growth, both the student housing and conventional multifamily markets are extremely competitive in the city. This year brought the enrollment of WWU’s largest freshman class in history; coupled with Bellingham’s sustained growth, this indicates strong rental demand will continue into the foreseeable future. The student housing market is currently 98% occupied and preleasing velocity for Fall 2023 is well ahead of last year’s pace. Year-over-year rent increases range between 6% and 9%, signaling rent growth above the national average. WWU ranked #2 in US News Top Public Universities in the West Western Washington University enrolled its largest ever freshman class for Fall 2022, with over 3,000 students. The university’s attractive suburban location, proximate to picturesque Sehome Hill Arboretum and Bellingham Bay, offer students an excellent community living opportunity. The 3rd largest university in Washington state, WWU continues to attract high-quality students with investments in STEM learning facilities and university infrastructure.

THE OPPORTUNITY

Western Washington University's main campus is located on 215 acres along Sehome Hill overlooking Bellingham Bay and Downtown Bellingham, approximately 90 miles north of Seattle and 55 miles south of Vancouver. The main campus features more than 90 buildings, with other university properties, such as the Shannon Point Marine Center, located in Anacortes. The university offers a wide range of on-campus housing options across its eight residential communities spread across three residential neighborhoods but does not require students to live on campus. Overall, WWU boasts a 4,145 on-campus housing capacity, leaving more than 10,600 students in need of off-campus housing options.

University Overview

1,038

Avg Unit SF

$2.73

Avg Rent / SF