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Believe in doing the right thing. CardinalGroup.com


2012 AWARDS BEST MARKETING AND LEASE UP PROGRAM

SHB 2012 AWARDS

STUDENT HOUSING BUSINESS

WESTMAR STUDENT LOFTS – ATLANTA, GA

by CARDINAL GROUP MANAGEMENT

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CardinalGroup.com

BACKGROUND

BACKGROUND

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TT H EE BBR AA N C DK G R O U N D . . . In order to properly tell this story, it’s important to understand the property’s troubled past at the time of acquisition. Below are well documented challenges that were ingrained in the reputational landscape of the property prior to Cardinal Group’s involvement: • Drug dealing (residents, management & security included); • Robberies & assaults; • A shooting; • Prostitution; • A separate agenda item on Atlanta Police Department’s weekly debriefing meeting.

HI ST OR I CAL

O CCU P A NC I E S

• 2009 - 42% • 2010 - 30% at acquisition

THE

G OALS

• 100% occupancy, in 9 months’ time (December 2010 – August 2011) • Change the Atlanta student housing market from a last minute lease-up market to a more evenly spread out leasing environment.

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

“A WESTMAR STORY...”

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TT H EE BI RDA EN AD S . . . A full scale marketing campaign was launched, which included: • Renaming & Rebranding • Strongest Web Presence in the Market (Traditional, Mobile, Social Media, iPad) • Traditional Marketing Avenues with Professional Design Integrity • Grass Root/Guerilla Marketing Campaigns (i.e. “Street Teams”) • Resident Life Events • Clean, Concise, Student-minded Collateral • Referral Programs • The “Outrageous Giveaway Game”

T H E

CH A L L E N G E S . . .

• The worst market reputation – “I would never live there” mentality to overcome. • New name – no market recognition • Removing the “bad apples” – emptying out the building in order to fill it up. • A “construction zone” from December 2010 – May 2011 • A leasing market that traditionally leases in July and August – weeks before school starts – no thank you!

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

“A WESTMAR STORY...”

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TURNAROUND

TURNAROUND

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FT IHRE SBTR ASNTD E P S Given the property’s history, the lease up was more than just colorful ads and traditional marketing efforts, it was a proactive, create your own market demand and go find our residents campaign. We did not have the ability to sit on our hands and ride our reputation to the finish line.

Rather, it was full scale

marketing warfare that required the collective effort between operations, leasing and marketing. Screening standards (background and credit) were immediately put into place, not done previously. This might be counterintuitive when trying to sign 1,214 leases, but we had to accomplish two things simultaneously: lease up and completely change the perception & reputation, which included getting the “bad apples” out and “good apples” in! The marketing and rebranding campaign started in early December 2010; MetroPointe Lofts became WestMar Student Lofts (coined after its location on well-known West Marietta Street) and renderings of the planned capital improvements were released to existing residents and future residents. This was the first of many critical step to escaping the reputational deficiencies of MetroPointe Lofts and our best attempt at separating WestMar from the hugely

BEST MARKETING & LEASE UP PROGRAM

REPUTATION & LEASING - 1,214 BEDS...

negative stigma of its former alias.

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C A P I T A L

I M P R O V E M E N T

R E N D E R I N G S

Lobby Improvements – “Prison to Plush” Site Plan Overview

Fitness Center – “The Dungeon to Desired”

BEST MARKETING & LEASE UP PROGRAM

THE NEW WESTMAR STUDENT LOFTS

Pool Improvements – “Blah to Bling!” CardinalGroup.com

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I N T E R N E T

P R E S E N C E

:: W E B S I T E

We wanted to make sure our web presence gave a long lasting and notable impression, with big bold images of the community, coupled with user-friendly, quick navigation. A new website was developed to accomplish just that. It was also important that each prospective resident could walk away well informed with the most, and only the most, important information needed for both them and their parents to make a leasing decision, including filling out an application to lease on the spot.

WestMarLofts.com

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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INTERNET PRESENCE :: MOBILE WEBSITE Given the demographic of today’s students and their ever engrossed existence on their phones, having a strong web presence “on-the-go” is essential. That’s nothing new, but what’s often missed is user-friendly, intuitive mobile websites. Cardinal Group worked hard on this and we believe we executed on that goal. For example, our mobile site allows its’ users to easily share the site with friends, schedule a tour, view pricing & floor plans, and (side note) allow residents to pay rent!

WestMarLofts.com/m

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BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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I N T R O D U C I N G ‌ T H E

i P A D

G U E S T

CA R D With 1,214 leases to sign, we needed efficiency across the board. iPad apps were designed for Leasing Team Members to quickly and efficiently track leads, present floor plans and show pictures using a medium that would resonate

with

students.

Therefore,

Cardinal Group developed a propriety iPad Guest Card that integrates with our Property Management Software (AMSI) so the Leasing Team did not need to spend endless hours entering thousands of guest cards into the system and could remain focus

on

what

is

most

important:

following up, giving community tours and signing leases!

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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TAKEAWAY

PIECE

::

COLLATERAL

All new collateral was developed. Professional, simple, conveniently-sized yet informative pieces spearheaded the thought behind the creation of these pieces.

AFTER

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BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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R E N E W A L

P R O G R A M

Incentivized to retain “good apple” residents, we offered an aggressive Renewal Program. Paralleled with our Referral Program, tickets were “earned” to attend the Outrageous Giveaway Game (our residents coined it, “The OGG”) on top of rent credits. More on “The OGG” in a bit. In order to incentivize the market to sign earlier, rather than later, the incentives tapered off the longer they waited to act.

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

Virtual Poster CardinalGroup.com

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S T R E E T

T E A M S

Equipped with branded shirts, branded iPad’s, and collateral, our street team swept through our market’s college campuses with one goal in mind – spread the word about WestMar to every single student on those campuses! How? The Street Teams would collect personal info on an iPad, “home base” would immediately follow up with further information and the Street Teams would leave behind a simple, catchy and easily tucked away in a pocket “tickler piece” for later reference by the future resident.

Handout

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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R E F F E R A L

P R O G R A M

An aggressive referral program and the “Outrageous Giveaway Game” promotion were created in which residents were highly incentivized to refer their friends and classmates. Each renewal quickly translated to: cash, rewards (Flat Screen TVs, FREE rent, and Apple iPads) and “OGG” tickets for referring others to sign leases.

Virtual Poster Handout

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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MARKETING & LEASING OU T R A G E O U S

G I V E A W A Y

G A M E -

“ T H E

O G G ”

How it Worked: Residents accumulated tickets one of two ways: (1) signing a lease, the earlier they signed, the more tickets received, (2) referring their friends and classmates to WestMar. The more game tickets the more casino chips received for the start of the OGG’s Casino Night at the Hyatt in downtown Atlanta and hence, the better chance of winning enough chips to select one of our “outrageous” prizes. 100 Prizes Included: All expense paid trip for two to Las Vegas (airfare, hotel, tickets to a show and some spending money), Mac Book computer, iPad’s, One year of gas on us, Maid service for one year, FREE luxury unit upgrade, School book voucher for 2nd semester, Helicopter ride around Atlanta and dinner for two, PlayStation Move, Cruise 4 Two, FREE car wash once a month for a year, Reserved parking spaces, Reserved pool cabanas on three days of your choice, Atlanta Citypass, etc.

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

T H E

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CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

THE “OUTRAGEOUS GIVEAWAY GAME”

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MARKETING & LEASING L I F E

We view our Resident Life Team as a “resident insurance policy” who are tasked with the overall “happiness” of the community. The Resident Life Team was tasked with: events, resident outreach, maintenance request follow-ups, and the like. Our group of Community Assistants (“CAs”) come with pizzazz, intelligence and talent. We held unique events that appeal to “adults;” students do not think, nor do they enjoy, being treated like “kids” and the events better reflect that. Additionally, our CA’s were able to produce videos promoting the community and special resident events and posted them on YouTube and our Facebook page.

Grocery BINGO!

Game Show Night

BEST MARKETING & LEASE UP PROGRAM

R E S I D E N T

Weekly Music @ Pool Braves Game

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sense of identity.

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

CardinalGroup.com

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WestMar’s “Bearcat” The fearless mascot behind the turnaround. Bearcat has been on the front lines making residents smile and sign leases for the past year. Bearcat was tasked with promoting events, accompanying on-campus street teams and providing WestMar with a


C O M P L E M E N T A R Y

C O M M U N I T Y

S H U T T L E S

Our branded shuttles act as the perfect mobile billboard around town and on campus. executive,

limo-style

These shuttles

allowed us to “bring the brand” to campus and give our residents a sense of exclusivity and pride when rolling up in style. Again,

the

brand

is

clean,

sophisticated and to the point and the shuttles reflect this.

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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S O C I A L

M E D I A

Social media accounts were created for Facebook and Twitter, allowing immediate communication between residents and our on-site team. Facebook quickly elevated to over 1,200 followers within one-year of our publication. We view our Facebook page as a virtual community bulletin board and has become a fun, informative and reliable resource for residents. We also manager our Social Media that gives our residents a voice, whether good or bad, and the hope is that future residents can get a non-bias understanding of WestMar and the way Cardinal Group manages our communities.

CardinalGroup.com

BEST MARKETING & LEASE UP PROGRAM

MARKETING & LEASING

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27” iMac’s – “Functional Art”

Highly Visible From Lobby

BEST MARKETING & LEASE UP PROGRAM

THE NEW & IMPROVED LEASING EXPERIENCE

Virtual Display Boards (behind reflection) CardinalGroup.com

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CardinalGroup.com

RESULTS

RESULTS

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ANTICIPATED RESULTS

LOOKING FORWARD

The rehabilitation, rebranding and stabilization plan is approximately two years ahead of schedule. The plan began

RESULTS

RESULTS

in August of 2010 and was completed by August 2011. CGI • Occupancy was anticipated to be 40% in the first year,

is now working to get rents back up to market.

70% in the second year, and stabilize at 87% in the third year. • Rents were anticipated to be an average of $486 per bed

Relationships with the universities have been restored and talks of a master lease and other collaboration are underway.

($1.29 P.S.F.) in the first year, and $564 per bed ($1.49

Multiple unsolicited offers have been received to purchase

P.S.F) in the second year.

the Property at values in excess of the Year Five anticipated

ACTUAL RESULTS •

value. The Property has gained its rightful place as the best-in-class, market leader for student housing in the Atlanta market. There is a vibrant community feel, excitement about the

• Occupancy was 38% at acquisition, and this year the Property was leased up to 100% with a waiting list.

Property and an inspired team in place to continue that trajectory.

• Rents were $512 per bed ($1.35 P.S.F.) at acquisition and are now $634 per bed ($1.68 P.S.F.) for pre-leasing for 2012-2013.

CardinalGroup.com

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RESULTS

WESTMAR OCCUPANCY CHART THE

“HOCKEY

STICK” WESTMAR

OCCUPANCY %

100.00%

80.00%

60.00%

40.00%

20.00%

0.00% 9/1/2010

CardinalGroup.com

12/1/2010

3/1/2011

6/1/2011

9/1/2011

12/1/2011

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ABOUT US

ABOUT US

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IENX VI SE TSITNMGE C NO TS NDITIONS

MANAGEMENT

Cardinal Group Investments, LLC (CGI) is a real estate

Cardinal Group Management & Advisory, LLC (CGM) is a

investment and asset management firm specializing in

full service real estate management firm.

opportunistic and value-added investments throughout the

specialized platform that allows them to handle all facets of

United States. CGI combines a highly analytical approach

real estate management throughout the United States.

with thorough research and reporting systems to deliver

Services include: development, entitlement, construction

superior results and transparency to its investors.

management, property management, accounting and leasing

CGM has a

ABOUT US

CARDINAL GROUP

& marketing. CGM leverages their culture, unique company structure and technology to deliver superior and results and reporting to its clients.

PORTFOLIO Cardinal Group is headquartered in Denver, CO and has an office in San Francisco, CA with ongoing projects in six states. Through its affiliate investment and management companies the firm currently: • Owns and manages 22 student housing properties consisting of more than 4,100 beds and was the 9th largest buyer of student housing nationally in 2010 per Real Capital Analytics. • Owns and/or operates 309 units of urban apartments • Advises on a $3 billion (at full build-out) mixed-use urban redevelopment.

CardinalGroup.com

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CONTACT

FOR MORE INFORMATION

Del de Windt, Principal Cardinal Group Investments, LLC (303) 407-4502 Del@CardinalGroup.com

CardinalGroup.com

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