NB Mountain Valley, DST

1000 Mountain Valley Dr., Morgantown, WV 26508

Total Offering Price: $38,751,419

Investor Equity $14,958,419

1000 Mountain Valley Dr., Morgantown, WV

Nelson Brothers believes that Mountain Valley apartments is well positioned to capture the growing post graduate student enrollment, as well as, undergraduate in a market that offers minimal on campus housing options

Property Summary

Nelson Brothers believes that the Mountain Valley apartments is well located (next to transit and entertainment) and has one of the best reputations and amenities package for off-campus student housing.

Mountain Valley Apartments is a 344 unit/ 658-bedroom multi-family student housing property that consists of 14 predominantly four-story apartment buildings. The property is in proximity to West Virginia University in Morgantown, West Virginia. It is a 6-minute bus ride to campus similar in distance to other comparable purposely built off campus student housing properties surrounding the University. The property was built in 2008 and offers a superior amenity package and has a history of high occupancy. There will also be a light value add opportunity with upgrades to communal areas including the clubhouse/game room, pool, hammock park and outdoor kitchen.

In addition to the property, this offering includes the surrounding 53 acres that has the potential to be developed into additional units and beds. The site is currently zoned medium density residential, which allows for a maximum of 16 units and 32 bedrooms per acre. It would be our goal to have this potential new development pay a rent to the DST to use the amenities and leasing office of the existing property.

Loan Details

Term 30: years. Interest Only: 5 years. Type: Fixed. Interest Rate: 4.30%. Amortization: 30 years.

Target Strategy

The investment strategy for Nelson Brothers is to seek properties with a sustainable competitive advantage that can leverage the historical stability of the University in a premium location. The goal is to produce a balance of potential benefits to investors which include: high stable occupancy, monthly cash flow, tax efficiency through depreciation and capital appreciation. Nelson Brothers believes that Mountain Valley apartments is well positioned to capture the growing post graduate student enrollment, as well as, undergraduate in a market that offers minimal on campus housing options

Targeted Benefits

7% First Year Targeted Cash-on-Cash
98% Current 2016/2017 Occupancy
Tax Efficiency Through Depreciation
Light Value Add Opportunity
Additional Development Opportunity

Community Amenities

24 Hour fitness center
Resort Style Swimming Pool
Game room/media lounge: Play Station/Xbox
360/movies, complimentary movie checkout
Shuttle to campus and multiple shopping, dining and entrainment
locations
Cyber café with free Wi-Fi and printing
Outdoor picnic with charcoal grilling area
On-site maintenance
Leash-free bark park
Starbucks Coffee and tea bar
Volleyball court
Full-sized basketball gymnasium

Interior Features

Refrigerator/dishwasher/disposal/microwave
Air conditioner
Spacious walk in closets
Washer/Dryer
Private patio/balcony
Private Bedrooms
Private bath for every bedroom

Student Housing

Interest is student housing has continued to grow steadily as more investors look towards less traditional asset classes within commercial real estate. For three years transaction volume has set records growing from $3.5 Billion in 2014, $6 Billion in 2016 and $10 Billion in 2016*. The increased attention has come from the sector offering less rental growth volatility and recession resistant hedge to conventional apartments. Meanwhile, strong levels of US college enrollment and the underfunded university budgets to finance new dormitory developments are creating investment opportunities.

Nelson Brothers believes that a flagship Division I school such as West Virginia University, near a large metropolitan city (Pittsburgh) will stay in high demand over the next decade.

West Virginia University

Founded in 1867 – WVU is the flagship institution of higher education West Virginia and is responsible for 53% of the state’s college graduates
Current enrollment is approximately 29,175 students and approximately 75% of WVU students live in off-campus housing
WVU employs 8,400 staff and faculty members and they generate over $127 million annually in sponsored and research grants
The National Law Journal named the WVU College of Law a “Go-To” law school

ABOUT Nelson Brothers

16B Journey | Aliso Viejo, CA 92656 (800) 580-1031

Current Management Portfolio At-A-Glance:

Founded in 2007, Nelson Brothers specializes in what the firm considers to be well-positioned student housing properties. Headquartered in Orange County, CA, Nelson Brothers manages over $500 million in real estate with more than 100 employees.