Vesper Holdings ("Vesper"), a privately-held real estate investment firm based in New York City, is pleased to announce that it has been awarded the coveted Student Housing Business Innovator Award for best turnaround project of the year. This award is based on a variety of factors including physical community improvements, rental rate and occupancy increases, and overall value creation. Vesper won the award in connection with its turn-around of The Harrison, formerly known as University Fields, a 288-unit, 1,152-bed student housing project that serves students attending James Madison University in Virginia.
Vesper’s turnaround plan was ambitious: transform University Fields from “Trashy Ashby” into a Soho meets South Beach style modern boutique hotel - with upscale amenities and best in class customer service. The plan involved executing a $8 million renovation of the property, rebranding the property “The Harrison”, restoring the trust of its current residents, and rehabilitating its reputations among JMU’s student body – all within an exceptionally short time frame.
The turnaround of University Fields into The Harrison is unparalleled in the student housing industry when considering the size of the project (1,152 beds) and dramatic increase in the property’s valuation ($19 million to $50 million within 18 months).
Successful execution of the turnaround plan resulted in spike in occupancy from 63% to 97% – which in turn enabled Vesper to charge substantially higher rental rates:
· Vesper increased The Harrison’s rental income from $3.3 million to $5.2 million
· Vesper increased the average rental rate approximately 30% from $359 to $460
Upon completing the renovation/repositioning, Vesper Holdings and its investors received a financial windfall. Within 18 months of foreclosing on the note it had purchased for $19 million, Vesper refinanced the Harrison for $37 million based on an appraised value of $50 million.
Elliot J. Tamir, Vesper Holdings’ co-founder said, “Vesper Holdings’ vision for The Harrison was straightforward: provide residents with the atmosphere found in a high-end boutique hotel with a primary focus on customer service, hospitality, a social environment, a top-tier fitness program, and groundbreaking design. Our success in turning The Harrison around is a testament to the exceptionally talented team that we have assembled and their flawless execution of the game plan.”
About Vesper Holdings
Founded by Elliot J. Tamir and Isaac J. Sitt, Vesper Holdings is a privately-held real estate investment firm based in New York City. Vesper Holdings’ diverse portfolio includes student housing, retail, mixed use, office buildings, and parking structures. In 2010, Vesper Holdings launched a fund dedicated to assembling a portfolio of high-quality multifamily properties located in close proximity to university campuses throughout the United States. Vesper Holdings ranks as one of the top 15 student housing owners in the nation. Vesper’s student housing portfolio consists of nineteen apartment complexes totaling approximately 10,700 beds. Vesper Holdings anticipates growing its student housing portfolio to over 20,000 beds within the next 18 months.
For more information about Vesper Holdings’ in-house management company, Campus Life & Style, please visit csliving.com. For more information about Vesper Holdings, please visit vesperholdings.com
###
