Location: Downtown Chicago within the Loop
6.25%: Targeted first year cash-on-cash return
Tax Efficiency: Pass through depreciation
Track Record: 100% occupancy – 8 consecutive years
Underserved Market: In the Loop, 58,000 student with only 2,600 off campus student housing beds
Value-Add Opportunities: Modern interior upgrades,all-new rooftop amenities, additional study rooms
With a central location, secure environment and best-in-class amenities, NB believes the Buckingham is well-positioned in a tight, underserved market place and as a result, can potentially deliver a variety of compelling benefits.
Stability: Historical track record of 98%+ occupancy since conversion to students in 2008. CBD location.
Monthly Cash Flow: Targeted first year at 6.25% with steady increases
Tax Shelter: NB believes depreciation may be favorable given a potentially high building-toland ratio.
Capital Growth: NB plans a handful of initiatives to potentially drive growth (See figure below)
Competitive Advantages: NB believes location, pricing (9-month model), living experience and amenities and security are potentially sustainable and difficult to replicate.
All are supported by enrollment at the estimated 60+ colleges and universities in the general Chicago area that may not be correlated to real estate cycles or the general market (see graph below).