University Apartments 600 Martin Luther King Jr Blvd 154 Unit Apartment Building $29,616,251 CAD ($192,313 CAD/Unit) 5.72% Cap Rate Chapel Hill, NC 27514

Opportunity to acquire a purpose-built, off-campus student housing asset, University Apartments, in the well-known higher education market, University of North Carolina at Chapel Hill (UNC at Chapel Hill). This 154-unit offers all one-bed, one-bath units and sits just 0.6 miles from campus. Built in 1969, this property is under a fifty (50) year ground lease with the land owner. The initial ground lease term has ±37 years remaining (expires February 2062) with the option to extend up to an additional 50 years through 5 renewal options of 10 years each. UNC at Chapel Hill boasts enrollment of over 30,000 students and the university is forecasted to average 0.6% enrollment growth over the coming three years. According to College House, UNC at Chapel Hill offers on-campus housing for roughly 27% of enrolled students, leaving approximately 73% of enrollment to source off-campus housing.
University Apartments has been well maintained over the years. Current ownership has incorporated ongoing capital expenditures into their annual budget, including upkeep for exterior aesthetics and interior renovations including paint, hallway lights, and a remodel for the leasing office. The roof was replaced in 2013 with a TPO membrane roof. The maintenance garage roof was replaced in 2023.
Each unit has one bedroom and one bathroom with a kitchen and living area and a balcony or patio (ground level). Some units are furnished. The property offers 168 uncovered, surface parking spaces. Twelve units have been upgraded over the last twelve months with renovations including upgrades to appliances, cabinets, stone countertops in kitchens and bathrooms, new kitchen backsplashes, paint, and fixtures throughout. Units have PTAC units with baseboard heating. On-site amenities include a recently updated leasing office, maintenance garage, fitness center, common laundry area, and a business center.
University Apartments presents an excellent investment opportunity for a new investor to acquire a well-established student housing asset that is close to a Power 4 university that has national brand recognition. With over ±37 years remaining on the ground lease, a new investor has the opportunity to continue to improve the property to add additional value to the asset, while benefiting from this well-performing, strongly pre-leased investment.