CU has maintained a strong draw from rural Colorado and Denver suburb students. But the university also boasts several compelling selling points that resonate with affluent students from both coasts; the academic reputation, proximity to the mountains and easy access from Denver all have helped contribute to continued enrollment growth. According to university sources, year-over-year applications for enrollment were up over 33% in 2013 and another 12% in 2014. Another key change fueling this growth is the athletic conference upgrade to the Pac-12, a move that has significantly increased athletic revenues and has helped draw more interest from affluent west coast students.
Barriers to Entry
The city council of Boulder currently has a moratorium placed
on new development on “The Hill” submarket. Nelson Brothers
anticipates that this moratorium may continue as it seems borne
out of a desire to limit the student influence in this region as an
attempt to keep the economy more balanced and less dependent
on the university. With the potential for growing demand through
increasing enrollment and limited new supply in the submarket,
this could result in highly favorable economics for the Plaza.
TermsNon-recourse. 10-year fixed interest rate loan, 30-year amortization, 4-year interestonly loan from Ladder Capital. DST structure.