While one might think that the student housing industry took a huge blow when campuses were shut down and students sent home, this is not necessarily the case. Our guest today, Nick Simpson, is the founder and CEO of Simpson Building Enterprises, a real estate investment firm focused on student housing and multifamily. Even though classes have been canceled, Nick says many students have chosen to stay put in their student accommodation, not wanting to be in lockdown with their parents.
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In fact, their properties that are now being developed are going to be constructed to cater to all the needs a student might have should a similar situation occur, being laid out and furnished in a way that keeps facilities clean and safe. In this episode, Nick shares why student housing is such a promising asset class, why he prefers to develop properties rather than buy existing ones, and how they know which type of properties will do well in each location. Our guest also advises about the latest trends in student housing, including the need for furnished apartments, and gives listeners an idea of what the development side of the business looks like.
Key Points From This Episode:
- Switching from single to multifamily and then to the student housing industry.
- Hear how Nick got interested in real estate investing and when he bought his first property.
- Why he chose to focus on the student housing asset class.
- The two reasons why they are involved in developments rather than existing properties.
- How they knew where the need in the market was and the products that would do well.
- Nick shares how their properties make provision for lockdowns and COVID-19 regulations.
- Why they develop housing near affordable rather than expensive universities.
- Trends in student housing to be aware of if you are an investor or an active operator.
- Thoughts on choosing easily cleanable, quality furniture and amenities for student housing.
- How the track of the developer differs from that of the syndicator or operator.
- The challenge of sticking to the price indicated to investors for the development of a property.
- Get a sense of what the development team looks like and what unexpected challenges they had.
- Why it is so important for Nick to keep laser-focused on this asset class right now.
[bctt tweet=”Whilst multifamily is definitely a focus in the area and it really does perform really well, we just felt like the high rise was something that would be better suited for the student housing. The returns are higher and we can really put that unique product in downtown and be competitive for the long term. — Nick Simpson” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Nick Simpson
Nick is the founder and CEO of Simpson Building Enterprises and has been involved in multiple commercial and residential projects valued at more than $50M in the greater Salisbury, Maryland market, including ground-up construction. He currently leads a team of talented real estate professionals who specialize in student housing, multifamily, and opportunity zone investments. Nick has also earned a Bachelor’s Degree focused in Business Management from Salisbury University – Perdue School of Business.
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