The Element is currently 100% occupied with leases running through August 2018.
Nelson Brothers believes the key to maintaining steady rental rate growth at The Element is the overall strength of the student housing market, continued enrollment growth at Sacramento State, the continued influx of affluent Bay Area students, the rental rate growth of the greater Sacramento market and management’s ability to potentially leverage some of The Element’s unique differentiating factors in the marketplace.
Nelson Brothers understands that the property has several competitive advantages. First, The Element has one of the strongest retention rates in the market. This can be attributed to weekly activities and an excellent sense of community. Built in 2003 and renovated in 2016, the property is newer than several competitors and boasts a contemporary, modern look. On the flip side, any of the newer properties, or potential new properties, will likely have been built to maximize efficiency, with little campus space, fewer amenities, small unit/bedroom sizes and 3-5 students per unit. The Element can provide a great contrast with its expansive open campus space: a large pool and BBQ area, game room and other community amenities along with larger unit/bedroom square footage and a favorable unit mix with several 1-2 bedroom units. The smaller unit mix at the affordable price and social amenities are fairly unique to the market and helps differentiate The Element by potentially offering students more privacy, more space and more of a social community.