University Suites & Villas at WCU 3 Multifamily Properties Offered at $26,970,571 CAD in Cullowhee, NC

SCOPE is pleased to present the opportunity to acquire University Suites & Villas at WCU, a 298-bed student-living complex located within a three-minute walk from Western Carolina University in Cullowhee, NC.
The 156-unit garden-style student housing portfolio is comprised of 60 studios, 18 one-bed, one-bath units, 46 two-bed, two-bath units, and 32 four-bed, four-bath units. The total portfolio is three parcels, two adjacent and one separated, all within a three-minute walk or drive of campus. The properties feature off-street parking spaces for tenants and full furnishing options. Units feature LVT flooring in kitchens and bathrooms, LVP flooring in living rooms, wall-to-wall carpeting in bedrooms, full tub and shower, central AC, ceiling fans, and in-unit washers and dryers. Community amenities include an on-site management and maintenance team, fitness center, pool, study lounge, basketball courts, tanning booth, private mail slots, and storage unit availability. University Suites has HVAC systems in place and central AC throughout the building. The building's roof and HVAC units are currently being replaced; only 15 of 55 HVAC units remain and will be swapped by the summer of 2025. The Villas and Villas II both have PTAC window units and are updated as needed.
The 2025-2026 academic year average in-place rent per bed for studios, one-beds, two-beds, and four-beds is $817, $1,021, $588, and $499 per month. The rents were under market for the 2024-2025 academic year with an average monthly rent per bed of $560. During pre-leasing for the 2025-2026 academic year, ownership pushed rents to an average of $622 per month, an 11 percent year-over-year increase. The historical occupancy has been at 100 percent, and ownership has already leased 100 percent of all beds for the 2025-2026 academic year. In addition, there is attractive Agency assumable financing available at 5.09 percent and 30-year amortization with two years remaining. The University Suites and Villas I loans mature on April 1st, 2027, and March 1st, 2027.  The seller is willing to take back a three-year $3.5M note at five percent interest-only payments, which boosts the cash-on-cash return to eight percent (+/-).
From 2016 to 2020, Western Carolina University's total enrollment increased by 18.72 percent from 9,673 to the university's record-high total enrollment of 11,434. After the pandemic, like many universities, they experienced a downturn and lost about eight percent of the total enrollment between 2020 and 2023. Since 2023, the university has made a strong comeback with enrollment trending towards pre-COVID numbers. The total enrollment in 2025 is at 10,932 students and continues to grow yearly.
The small city of Cullowhee is a secluded, heavily wooded community in the heart of North Carolina’s Nantahala National Forest. The mountainous terrain in this market creates a high barrier to entry due to the lack of suitable developable land. The rolling hills and beautiful forests form the backdrop to a charming college town, anchored by Western Carolina University, serving over 11,000 students and employing hundreds of locals as faculty and staff. The university is the main economic and cultural driver for the community.