Cottages of San Marcos Best Turnaround

M A N AG E M E N T

SHB INNOVATOR AWARDS 2020 Best Turnaround Project | The Cottages at San Marcos Cardinal Group Management + Agency Fifty3 + Mapletree

the BACKGROUND The Cottages at San Marcos is a 899-bed purpose built student housing community in San Marcos, TX. The community sits about 2 miles from the center of Texas State University. It features 3, 4, 5, and 6 bedroom cottages all with bed/bath parity. Residents enjoy amenities such as a resort-style pool with swim up cantina bar, 24-hour fitness center, sand volleyball court, a private shuttle to campus, and much more.

Cardinal Group Management, in partnership with Mapletree, assumed management of The Cottages at San Marcos in July of 2017.

the COMMUNITY

the CHALLENGES 01

02

03

POOR REPUTATION

LOW OCCUPANCY

HIGH DELINQUENCY

01 THE CHALLENGES

POOR REPUTATION When Cardinal Group took over the asset it was known around town as “Trapstone.”

This was a nickname given by students as a nod to the name “Capstone Cottages” and the how unfavorably they viewed the community. It had a well known reputation for being a very unsafe and rundown place to live. 8 months prior to CGMs takeover there were videos from a fight at the community circulating around social media with well over 50,000 views. The well documented reputation would be an extremely hard hurdle to overcome.

“Throughout my time at Capstone I experienced property damage and witnessed other residents' units have property damage as well. The community is not safe at all. One day I came home to police at the pool after there were gunshots fired over a drug dispute. I have found drugs on my front porch and had random people knock on my door looking for drugs to buy.“ - Google Review

02 THE CHALLENGES

LOW OCCUPANCY When Cardinal Group took over management of the community it was occupied at a mere 77%.

This poor starting point would be a major obstacle in the turn-around effort. Fewer current residents meant a much smaller pool to renew from, meaning we had to renew a higher than average percentage of residents along with grabbing more new leases than our competitors. That’s not to mention fewer mouthpieces to spread the word about the new and improved Cottages at San Marcos. A herculean effort on the marketing front was needed to overcome this obstacle.

03 THE CHALLENGES

HIGH DELINQUENCY Delinquency was a major issue upon takeover and cutting into the financial success of the community. The previous management, likely in an effort to keep residents happy, made many payment exceptions. However, this actually backfired and fed into the lack of clear policies and rules across the community. It also led to very high deliquency.

the GAME PLAN In order to overcome the major challenges the community faced we focused heavily on operational and marketing tactics.

Repairing the extremely poor reputation was the most important piece to the plan. Without repairing the reputation of the community, none of our marketing initiatives would take hold and the community would find itself in the same position.

creating A SAFE COMMUNITY Patrol Service & Courtesy Officer A security company was brought in to patrol the community on a nightly basis. Our strategy was to take a proactive rather than reactive approach. Parties and other situations that invite trouble were extinguished quickly before incidents arose. Any major issues were dealt with swiftly and to the full extent of the lease and law.

Zero Tolerance Policy Established Zero Tolerance policies. All residents are held responsible for guests including: noise complaints, drug use/possession, underage consumption of alcohol, felony or misdemeanors occurring on or off site.

Clear and Consistent Communication Residents were given consistent and clear communication about all community rules and procedures. The student staff was also given extra training in this area so everyone was marching to the same beat.

CREATING A SAFE COMMUNITY

AFTER ONLY A FEW MONTHS OF OUR NEW SAFETY PROCEDURES INCIDENT REPORTS FELL BY 50% AND HAVE STAYED AT THIS LEVEL

CREATING A SAFE COMMUNITY

PRE

SAFETY MEASURES Online sentiment also began to turn the corner.

Serious warning, DO NOT waste your money moving here. Not only is it ridiculously overpriced but there is no safety in the housing or for your cars. People walk in and out of the cottages like it's one giant trap house and stuff goes missing all the time. The cars are constantly getting keyed and broken into.

- Ashley L. Yelp Review The community is not safe at all. One day I came home to police at the pool after there were gunshots fired over a drug dispute. I have found drugs on my front porch and had random people knock on my door looking for drugs to buy.

- Austin J. Yelp Review First off I can't count how many times a random person would walk up to me and ask if I know a drug dealer. People just drive here just to look for drugs.

- Jacob S. Google Review

CREATING A SAFE COMMUNITY

POST

SAFETY MEASURES Management has recently changed and they have fixed a lot of issues and improvements continue to show.

- Aaron C. Google Review This is a great apartment complex, that has great management. I know from past reviews that management has been an issue, but they are a part of Cardinal Management group now and the staff is very helpful and sweet, never had a problem, nothing but good experiences!

- Allie B. Google Review The cottages is such a great place to live. The new management is so nice and friendly.

They have great amenities and are always giving their residents the best treatment!

- ReeAnn R. Google Review

MARKETING

01

02

NEW BRAND

LIFESTYLE STORYTELLING

the NEW BRAND In order to help signal that big changes were instore for the community we launched a new brand for the community in conjunction with Agency Fifty3. The new brand helped breath new life into the struggling asset.

OLD LOGO

NEW LOGO

cottages IS :

cottages IS NOT :

CAREFREE

BORING

ADVENTUROUS

LAME

VIBRANT

STUFFY

FRIENDLY

STANDOFFISH CRAMPED

WELCOMING

FAKE

FUN

HIGH-STRUNG

SPACIOUS

FACE IN PHONE DISEASE

FRESH

JUST A PLACE TO NAP BETWEEN CLASSES

A CAMP FOR COLLEGE STUDENTS

DRUNK PARTIES

ENDLESS ACTIVITIES

A PLACID PLACE

A FRIENDLY NEIGHBORHOOD

A STANDOFFISH COMMUNITY

FULL OF ADVENTURE

A GHOST TOWN

the BRAND MANIFESTO Your home in college should be an escape. An escape from the real world and all of its pressures. Every day should feel like summer camp did as a kid; carefree, adventurous, jammed full of fun, and a little bit magical.

Your day should begin with sunrise yoga and end with stories around the campfire. Your Instagram feed should be full of one-of-a-kind experiences like Camp College, Float Trips, and Sand Volleyball Tournaments.

Sure, you’ll fit some classes and studying in-between the fun, but college is as much about the experience as it is about the degree.

Make Cottages at San Marcos your escape.

new MARKETING STACK The new modern brand, improved safety, and changing perceptions gave us a strong message to go to market with. We developed a new and industry leading marketing stack that blended data, creativity, and beautiful design into a powerful marketing engine. Every piece of messaging, channel, and tool seamlessly reflected the new brand and product offerings which resulted in a record-setting performance year for the asset.

new WEBSITE With the new brand we launched a clean new website that focused on the new lifestyle and exceptional array of amenities.

(409) 299-4155

H OME

FLOOR P L AN S

AMENITIES

GA LLERY

LOCATION

CONTACT

RES IDENTS

Top 10 Reasons To Live At The Cottages

Apartments are so last year. Live in a cottage. Click here to view specials.

// WEBSITE

VISIT WEBSITE

APPLY

new VIDEOS

View Video

View Video

new COLLATERAL BROCHURE

RACK CARD

everything

YOU NEED IN ONE PLACE Resort-Style Pool With Swim Up Cantina Bar State-Of-The-Art Fitness Center Pilates and Zumba Room Huge 24-Hr Clubhouse Private Shuttle Bus To Campus Game Room With Billiards, Foosball & More

Computer Lab, Study Rooms & Free Wi-Fi Pet Friendly with Dog Washing Station Walking and Fitness Trail with Green Spaces Unique Cottage & Townhome Floor Plans Front & Back Porches

Stand-Up Tanning Beds

Hardwood-Style Flooring

Sand Volleyball & Half Basketball Court

Washer & Dryer Included

Outdoor Fire Pits & BBQ Grills Hammock Beach Area

BUSINESS CARDS

Sauna & Steam Room

Horseshoe and Cornhole Pit

Internet & Cable TV Included Furnished & Unfurnished Options Intrusion Alarm

3 BE D + 3 BATH C OT TAG E 1346 sq. ft.

TOP LE V E L

FIRST LAST NAME title 1415 Craddock Ave. San Marcos, TX 78666 512.754.3333 ďŹ rst.last@cottagesatsanmarcos.com

CottagesAtSanMarcos.com

C O T TA G E S AT S A N M A R C O S . C O M | 4 0 9 . 2 9 9 . 4 1 5 5 1 4 1 5 C R A D D O C K AV E | S A N M A R C O S , T X 7 8 6 6 6 B OT TO M LE V E L

upgraded

SOCIAL MEDIA The social media content prior to the new brand was extremely poor with no strategy. Previous content focused only on hard sales messages and internet outages. Most people do not want to be sold to with every post on social media. With the launch of the new brand, we ensured that content focused on the lifestyle and sprinkled in sales messages every once in awhile. The aesthetics of posts were also elevated to help further build the brand.

D O N ’ T FA K E S P R I N G B R E A K C A M PA I G N TV, movies, and social media all depict spring break as a time when every college student boards a jet and and enjoy’s lavish parties in exotic locations.

This has left students chasing Instagram likes in a reality that is far less glamorous. The Chicago Tribune reported that only half of college students go on a spring break vacation and of these students 70% planned to spend less than $1,000. This leaves the lavish spring break parties out of reach for most students. We used this data and the popular Instagram vs. Reality meme as the basis for our “Don’t Fake Spring Break” campaign. The campaign features videos of college students faking their Gramworthy spring break photos in and around their apartment community. By signing a new or renewal lease at The Cottages at San marcos participants are entered to win an all-inclusive Mexico vacation to a premium resort for them and a friend.

D O N ’ T FA K E S P R I N G B R E A K C A M PA I G N

new MERCH RENEW STICKER

Think again! Renew today & receive a lower rate CottagesAtSanMarcos.com

M A N AG E M E N T

PARKING STICKER

00001

BROCHURE

yodel worthy CAMPAIGN We collaborated with internet star, Mason Ramsey aka Yodel Boy, on a series of videos promoting features of the community. The campaign created quite a bit of buzz and thousands of views on social media.

new LIFESTYLE With the launch of the new brand the community also embarked on a new lifestyle offering for residents. The lifestyle pivoted from a frat house party atmosphere to a more sophisticated and relaxed environment that still knew how to have a little fun. Keggers turned into craft beer tastings and fights into group workout classes.

improved REPUTATION Soon our residents started to respond to the new policies and security measures, a new brand, and revamped lifestyle. What was once seen as a community of last resort had blossomed into THE place to live. The reputation within the market quickly spread. The community improved it’s J Turner Online Reputation Assessment (ORA) score from a terrible 61 before takeover to a best in market 80 score today.

ARBA: 50

THE LOCAL: 67

THE WOODS: 57

COPPER BEECH: 70

NATIONAL AVERAGE: 63

THE COTTAGES AT SAN MARCOS

HILLSIDE RANCH: 67

80

DELINQUENCY Upon takeover we implemented clear and concise policies that were always followed. This helped train residents in paying on time. Some of the new procedures implemented were not allowing partial payments, payment education upon lease signing and move-in, and only waiving one late free per year. On top of this, improved communication was implemented to ensure payment did not slip residents’ minds. This included emails, flyers, and bandit signs before and after the 1st of the month.

DELINQUENCY

2017 2018

78% REDUCTION

2019

91% REDUCTION

the RESULTS

THE RESULTS

NOI 2018 2019 114.6% INCREASE

THE RESULTS

REVENUE 2018 2019 20% INCREASE

THE RESULTS

EXPENSES 2018 2019 20% DECREASE

THE RESULTS

REDUCTION IN INCENTIVES 2018 2019 100% REDUCTION IN INCENTIVES

pre LEASING

2017 2018 2018 2019 2019 2020

COTTAGES

77%

THE MARKET

COTTAGES THE MARKET

COTTAGES THE MARKET

96%

86% 96%

99% 92%

2020-2021 PRE-LEASING

AS OF FEBRUARY 3RD, 2020

55%

COTTAGES

42%

THE MARKET

M A N AG E M E N T

ABOUT US

MANAGEMENT Cardinal Group Management (“CGM�) is a full service real estate management firm. CGM has a specialized platform that allows them to handle all facets of real estate management throughout the United States.

CGM leverages their culture, unique company structure, accountability, focus on top-line revenue and high regard of technology to deliver superior results and reporting to its clients.

PORTFOLIO Cardinal Group Management oversees a portfolio of 50,000 student housing beds as well as a portfolio of conventional multi-family housing around the country. In addition, Cardinal Group advises on a $3 billion mixed-use urban redevelopment in Denver, CO.

ABOUT US

Agency FIFTY3 is a full service marketing agency that specializes in the Real Estate Industry. We offer creative, digital and social media services that continue to stand above the noise.

C O N TAC T U S

FOR MORE INFORMATION, CONTACT:

RYAN SUNDLING, Marketing Manager Cardinal Group Management Ryan.Sundling@CardinalGroup.com