STUDENT HOUSINGINVESTMENTS

EXPERIENCED LEADERSHIP.CUSTOMIZED SOLUTIONS.

WEST 22 2040 LOFTS THE DOMAIN AT COLUMBIA ON50

As the number of students enrolled at higher education institutions continues to rise, the housing deficit will continue.

During times of economic recession, conventional apartments suffer, while student housing grows due to students staying in or going back to school.

Supply2.9M Students

Demand13.2M Students

Demand Gap10.3M Students

Student NOI up 11.9%

Apartment NOI down 3.4%

Being in a fragmented industry allows a potential investor to participate in the consolidation and institutionalization of the industry, providing higher returns from an institutional exit.

Cap Rates Student Housing Ownership

Individuals and Small Group

Largest Owners

42 NORTH 4050 LOFTS

WHY INVEST IN STUDENT HOUSING?

• High demand• Resilient to recession• Fragmented growing industry • Higher cash yields compared to conventional apartments

Student housing is a new and highly fragmented industry that has seen an explosion of institutional interest in recent years. As student enrollment rates at degree-granting institutions continue to grow, so does the demand for additional student housing communities. According to the Department of Education, there will be roughly 14.7 million full-time students in 2021, an increase of 10.3% over 2013. As of 2012, only 22.7% of full-time students were living in dorms, resulting in 77.3% of full-time students looking for other housing options.

Student housing has proven to be very resilient in times of economic recession. People go back to or stay in school because they cannot find work and want to delay paying off student loans, leading to higher enrollment rates. From 2007 to 2010, student housing REITs increased NOI by 11.9%, whereas conventional apartment NOI decreased by 3.4%. Additionally, student housing capitalization rates generally trade 50 - 100 basis points greater than conventional multifamily housing, thus providing higher cash yields.

• Leading privately held national platform

• Over $325 million equity raised through pension fund partners

• Over $1.5 billion in assets under management

• Proven track record: 130 properties and 70,000 beds managed

• Excellent investment return performance exceding both the NPI and IPD indexes since inception

• Campus Advantage partners and clients include CalSTRS, SBAF, LaSalle Investment Management, AIG Real Estate, MSD Capital, and ASB Capital Management.

WHY INVEST WITH CAMPUS ADVANTAGE?

CAMPUS POINTE CABANA BEACH

CAMPUS QUARTERS AUTOMATIC LOFTS NORTHGATE LAKES BELMONT

Campus Advantage properties continue to outperform NPI and IPD indexes.

Source: Heitman Capital

CASE STUDY: CAMPUS VIEW

Campus Advantage acquired Campus View in Columbia, Missouri in March 2008 when it saw an opportunity in the 19-year-old community, which was 97% leased at the time. Managed by a conventional apartment manager, Campus View suffered from deferred maintenance, a lack of Internet infrastructure, and the ease of living associated with student housing. Upon acquisition over $2.8 million was invested in capital projects, including interior unit renovations, new furniture, wireless Internet, and various cosmetic upgrades. The resulting increases in rental rates over the next five years allowed the property to be sold in July 2014 having achieved an IRR of 24.8% and a 3.1x multiple on invested capital.

3.1xMULTIPLE ON

CAPITAL

24.8%

YEAR MASTER LEASEWITH UNIVERSITY

OF MISSOURI

163%RENT

INCREASE OVERFIVE YEARS

5

IRR

154%NOI

INCREASE OVERFIVE YEARS

Campus Advantage NCREIF Property Index - Apartment PREA | IPD Core, Diversified Open-End Funds Results

Campus Advantage is based in Austin, Texas, and offers a full array of higher education services including student housing development, acquisitions, and consulting and management services both domestically and internationally.

THE CAMPUS ADVANTAGE ADVANTAGE

CONSULTING SERVICESOur team specializes in a variety of areas, including demand feasibility, operational assessment, and design and programming consulting. These services are provided in conjunction with market studies and student surveys to provide a 360-degree assessment to our clients. We have completed over 200 professional consulting assignments.

STUDENT HOUSING INVESTMENTSCampus Advantage has sponsored several joint venture partnerships and acquired over $550 million in student housing assets. We have participated in the development of more than 60 successful new student housing communities. In 2013 and 2014 Campus Advantage was the most active buyer in the student housing industry.

STUDENT HOUSING MANAGEMENTOur operations team specializes in creating an academic, social, and recreational environment where students can thrive. By maintaining each property to the highest possible standard, we are able to lease the property to maximum occupancy and at the highest rents while providing an environment that our residents love. This helps to both retain current residents as well as market the property to new residents through word of mouth.

MARKETING PARTNERCampus Advantage’s affiliated strategic marketing agency, Catalyst, has an award-winning, knowledge-able, and dedicated team who specializes in the higher education and student housing industries. By focusing on student-centered marketing and results, Catalyst is able to successfully target and reach our demographic with maximum efficiency.

COMMITMENT TO RESIDENCE LIFEAt Campus Advantage we have the highest resident retention rate in the industry for a reason—our unique approach and commitment to residence life and student development. We set our students up for success with our award-winning Students FirstTM program.

NATIONAL PRESENCEAccording to Student Housing Business Magazine, Campus Advantage is the 6th largest student housing manager in the United States. We manage nearly 25,000 beds located on over 30 campuses in 20 states.

States hosting CA consulting engagements

Properties managed by CA

Campus Advantage110 Wild Basin Road, Suite 365

Austin TX 78746Phone : (512) 472-6222

Email : investments@campusadv.comwww.campusadv.com

“Campus Advantage has overseen the operations for a portfolio of our properties…[that] were struggling with occupancy as well as operational issues. [They] were able to fully staff the property with professional staff, maintenance staff, and community assistants. Through these efforts, our portfolio reached 96% occupancy.”

—Stephen Adams, Senior Vice President LaSalle Investment Management

—Pete Fawcett, Managing Director Heitman Capital

“The individuals at Campus Advantage are singularly focused on student housing, and their commitment to the business has made their company an industry leader.”