Campus Advantage Investments

THE CAMPUS ADVANTAGE: ADVANTAGE 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.

STUDENT HOUSING INVESTMENTS Campus Advantage has sponsored several joint venture partnerships and acquired over $675 million in student housing assets. We are the 10th largest owner of student housing in the United States (SHB magazine). In 2013 and 2014 ,Campus Advantage was the most active buyer in the student housing industry.

“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.”

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

CREATING SUCCESSFUL COMMUNITIES.

—Pete Fawcett,

—Stephen Adams, Senior Vice President LaSalle Investment Management

Managing Director Heitman Capital

STUDENT HOUSING MANAGEMENT Our 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.

CONSULTING SERVICES Our 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.

“We are on a mission to lead the world in creating financially successful communities that excel in providing rewarding living, learning, and career experiences.”

— Mike J. Peter

CEO Campus Advantage

MARKETING PARTNER Campus Advantage’s affiliated strategic marketing agency, Catalyst, has an award-winning, knowledgeable, and dedicated team that 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.

STUDENT HOUSING INVESTMENTS

COMMITMENT TO RESIDENCE LIFE At 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 PRESENCE According to Student Housing Business (SHB) magazine, Campus Advantage is the 10th largest student housing manager in the United States. We manage approximately 25,000 beds in more than 40 properties.

Campus Advantage 110 Wild Basin Road, Suite 365 Austin TX 78746 Phone: (512) 472-6222 Email: investments@campusadv.com www.campusadv.com

THE D OM A I N AT COLU M B I A

THE MARQ

W E ST 2 2

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

Demand Gap 10.3M Students

Supply 2.9M Students

Demand 13.2M Students

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

Year-End NOI Growth (2001-2013) Student NOI up 11.9% Apartment NOI down 3.4%

O N50

WHY INVEST IN STUDENT HOUSING? • • • •

42NO RTH

405 0 LOFTS

Campus Advantage properties continue to outperform NPI and IPD indexes.

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.

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.

WHY INVEST WITH CAMPUS ADVANTAGE? 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

• Leading privately held national platform • Over $475 million equity raised through pension fund partners • Over $1.5 billion in assets under management

154%

163%

NOI INCREASE OVER FIVE YEARS

RENT INCREASE OVER FIVE YEARS

5 YEAR MASTER LEASE WITH UNIVERSITY OF MISSOURI

• Proven track record: More than 145 properties and 75,000 beds managed • Excellent investment return performance exceeding 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 Individuals and Small Group Largest Owners

• Over $100 million in capital expenditure projects delivered on time and on budget

24.8% IRR

3.1x MULTIPLE ON CAPITAL