Aventerra is an experienced, nationally focused real estate development firm focused exclusively upon developing purpose built student housing.  Aventerra draws upon the broad base of experience held by it’s senior management team to increase the value of underlying real estate through opportunity investment throughout the nation.  The market is remarkably deep and will continue to grow due to the "Echo Boomers" graduating high school through 2016.  Student housing supply is already well behind demand creating a unique opportunity for new product.  With debt remaining available for multi-family properties even during these difficult times, the first to market will win.

We will offer a vertical range of real estate services to our JV partner focused upon the unique student housing market segment.  In addition to our development services, we offer consulting services such as portfolio management, strategic planning, project management, acquisition / disposition and debt placement and private equity advisory services.  Our competitive advantage is based upon our executive team's experience developing and delivering 16 purpose-built student housing projects with over 13,000 beds.

Purpose – Form Partnership Between Aventerra and Investment Firm to Pursue Opportunity Grade, Purpose Built, Ground up Student Housing Projects.

AVENTERRA:  Provides JV Partnership with a host of vertically integrated real estate services as developer & construction manager, access to and obtain additional equity investors, identify and analyze opportunities, and asset management for each project built.

Investment Firm:  Provides projected JV partnership operating capital shortfalls, investment equity, and recourse on debt.

Partnership Equity Investment:  We anticipate  Investment Firm will invest $6 million in equity to develop a $300 million portfolio.

    Number of Projects                                12 over 5 years, $300M in total

                                                                   development costs, $60M in

                                                                   total equity

    Firm’s Equity Investment                       $6M (10%)

    Equity Investors                                     $54M (90%)

    Promote                                                 JV Partnership -    30%

                                                                   Aventerra - 20% of the JV Partnership Promote

Investment Characteristics:                   10% cash on cash return on project costs

                                                                 20% + IRR, equity multiple of 2+

Pipeline Status:                                       One under agreement, eight in

                                                                  preliminary due diligence

Earning Upon Exit After Year 5:                                    

Total projected returns available upon request.

Competitive Advantage

While Aventerra anticipates that competition will exist in the market place in existing and new projects, we believe that we have a strong comparative advantage in the strength of our management team, our expertise in the market place and our access to a premium group of investment partners and resources.  Our combined experience includes developing and delivering 16 purpose-built student housing projects with over 13,000 beds while many of our competitors are learning each time they complete a property. 

MARKET RESEARCH

The purpose-built student housing market is expanding, being driven by the increasing gap between growing demand and tightening supply:

Demand - Driven by the combination of an increasing US population, increasing student enrollment, economic trends, institutional changes and customer preferences.

Tightening Supply – Caused by the combination of a reduction in on-campus housing as a percentage of enrollments, growing state budget deficits and credit tightening in the residential real estate markets which reduce available student housing.

The Gap Between Demand and Supply – Caused by the predicted rapid expansion of the population called “Echo Boomers” through 2016, coupled with the declining availability of on and off campus student housing.  Post Echo Boomer growth is predicted to continue at a modest rate from 2017 – 2050.  

Demand

Student housing demand is outpacing population growth due to higher numbers of people turning 18, graduating high school, and enrolling in college.

Over the last 20 years the US Population grew 23.36%, yet college and university enrollments have grown 40%  (from 12.8M to 18M people).

In response to demand, over the last 20 years the number of colleges / universities increased from 1,985 to 4,389.

In 2008, 64.26% of the 15,659,000 students were enrolled full-time.  It is now projected that by 2016, 66.30% of 17,354,000 students will be enrolled full-time.  Thus demand will grow by an additional 3,582,445 beds, or 45.21% by 2016.

 There is also a national trend towards students taking a longer time to graduate, effectively increasing student housing demand.  Length of occupancy is tied to the university as once a student leaves a college, they rarely come back.

Supply

Student housing supply declined over the last 20 years despite two economic boom periods.  This is due to college budget shortfalls and the flat growth of multi-family.

With credit tightening, we can expect to see increased demand for apartments which will impact the supply of student housing.

Consumers are becoming more sophisticated, demanding amenity-rich, purpose-built student housing to meet the unique needs of this market segment.  

Purpose built amenities for this unique market segment typically include:

                                One parking space per bedroom, and each bedroom has a private bath.

                                Each bedroom has a lease / separate key with a shared living room / kitchen.

                                Units are fully furnished.

                                Utilities are included in rent, such as power, cable TV, and internet.

                                Other student lifestyle features include pools, fitness centers, and rec. room.

                                Management is on-site 24/7.

Future Trends and Market Orientation

The Echo Boomers population bubble will end in 2016, but overall populations are expected to continue to increase through mid-century according to population, enrollment, economic and institutional projections.

Primary drivers of the student housing market are enrollments at 4 year universities and colleges.

Primary focus of this proposed JV is exclusively the student housing market segment, not upon the entire multi-family housing market. 

Operation of the property will be tied exclusively to a college student’s academic calendar, which is unique from full and part-time workers.   

MANAGEMENT BIO's AND COMPLETED PROJECTS

Principal - Stephen Kriegel

Mr. Kriegel is currently a Principal for Elevation Realty Partners, a Real Estate Development and Consulting firm headquartered in Chicago.  In addition, Mr. Kriegel has a breadth of Development experience in a broad array of asset types including Class A Hospitality Developments, Class A retail and mixed use Developments and Purpose Built Multi-Family Developments.  Mr. Kriegel has provided his expertise to a host of investment firms, such as; Harrison Street Real Estate, Carlyle Realty, Greenfield Partners, General Growth Properties, Somera Capital Management, Pacific Retail Partners, Lupert Adler and AEW Capital Management. Mr. Kriegel, received a B.S in Civil Engineering from Purdue University in West Lafayette, IN.

Principal - Stephen H. Harris, AIA           

Stephen Harris is an award winning real estate developer and licensed architect specializing in retail, hospitality, and residential projects worth hundreds of millions of dollars.  He has led project teams on major development projects throughout the nation working with Circuit City, Pep Boys, Intercontinental Hotels, and General Growth Properties.  He served as a Senior Developer, and as SVP of Development and Construction for Arlington Hospitality and was a member of this public company’s Steering Committee. 

COMPLETE PURPOSE BUILT STUDENT HOUSING PROJECTS

University, State & Property Name

University of North Carolina at Charlotte, NC -  University Village

Louisiana Tech, LA -  Collegiate Station

Central Missouri State, MO -  Collegiate Station

Denver University, CO -  Asbury Green

Arizona State University, AZ -  Campus Suites on the Rail

University of Idaho, ID -  The Grove

University of Kansas, KS -  The Grove

Texas State University at San Marcos, TX -  The Grove

Angelo State University at San Angelo, TX -  The Grove

University of Central Arkansas at Conway, AR -  The Grove

Georgia Southern University at Statesboro, GA -  The Grove

Sam Houston State University at Huntsville, TX -  The Grove

University of Alabama, AL -  The Retreat

University of Tennessee, TN -  The Retreat

Texas Tech University, TX -  The Retreat

Indiana University / Purdue University, IN -  1201 Indiana