Eugene, Oregon — Patterson Place Apartments, a 14-unit luxury student housing project located near the University of Oregon has pre-leased to 100% occupancy for the upcoming 2011-2012 school year beginning in the Fall. The announcement came from Brian Nelson, Principal and Co-Founder of Nelson Brothers Professional Real Estate, LLC. The property was purchased last fall as a Tenant-in-Common (TIC) structure by the Southern California-based real estate firm that specializes in student housing and assisted living properties.
According to Nelson, this is the fourth consecutive year the mixed-unit property was pre-leased by the end of April. Each unit is leased out by the bed with leases contracted for 12 months, with a guarantee by each student’s parents.
“Even with a four percent rental rate increase this year, 12 of the 14 units were renewed from current students and the two open units leased up right away”, said Nelson. “Despite challenges in this economy, this further illustrates the need as well as the demand for high-end student housing in the University of Oregon market.
Our investors are thrilled. This is a great example of why diversification into need-driven real estate can be so successful, with all the volatility and uncertainty of today’s economy and other investment vehichles.”
Patrick Nelson, Principal and Co-Founder of the firm, also believes this is encouraging news for investors. “Knowing the strength of this market and the location of the upscale housing so close to campus, we’re not surprised to see Patterson Place lease up again and very quickly. It’s very reassuring for people knowing that this property will be 100% full all the way through September 2012. “
The property was built in 2008 with 14 units and 48 beds comprised of (two) 2-bedroom units, (four) 3-bedroom units, (four) 4-bedroom units and (two) 5-bedroom units. The University of Oregon was built in 1876 and currently has over 23,000 students with an endowment of nearly $500 million.
Nelson Bros. launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of office, retail and multi-family properties for TIC investments throughout the West and Southwestern United States.