SHB Best Turnaround - Edge 1120

SHB 2020 I N N OVAT O R AWARDS Best Turnaround EDGE 1120

CO M PA N I E S

Edge 1120 is a 590-bed purpose built student housing community in Toledo, OH. The community is adjacent to the University of Toledo. It features studio, one-, two-, three-, and four-bedroom apartments all with bed/bath parity. Residents enjoy amenities such as a resort-style pool, 24-hour fitness center, sand volleyball court, a dedicated gaming room, and much more.

Cardinal Group Management, in partnership with William Fideli Investments, assumed management of Edge 1120 in March of 2018.

THE COMMUNITY

THE CHALLENGES LOW OCCUPANCY | SALES AND MARKETING ISSUES | INSUFFICIENT PARKING

THE CHALLENGES INSUFFICIENT PARKING

This may sound like a minor issue that has little importance to the financial turnaround of an apartment community. Tell that to the residents who were frustrated with no place to park at their home. Residents voiced their frustrations on every outlet they could including in the office, on social media, and on review sites. The parking shortage cost the community dozens of renewals and created some reputation damage that likely scared future renters away. A solution needed to be found if we were going to turn around the community.

THE CHALLENGES SALES & MARKETING ISSUES

Edge 1120 had sales and marketing issues that stymied the success of the community. There were gaps in the sales process and marketing strategy that caused lead velocity issues and incorrect brand positioning. If the community was going to be successful we’d need to up its sales and marketing game to produce 25% more traffic compared to years past.

THE CHALLENGES LOW OCCUPANCY

When Cardinal Group took over management of the community it was occupied at a mere 81%.

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. The low occupancy also meant fewer mouthpieces to spread the word about the new and improved Edge 1120. A massive effort on the marketing front was needed to overcome this obstacle.

THE GAME PLAN IN ORDER TO OVERCOME THE MAJOR CHALLENGES THE COMMUNITY FACED WE FOCUSED ON A UNIQUE BLEND OF OPERATIONAL AND MARKETING TACTICS. THIS NEW STRATEGY HAD IMMEDIATE IMPACTS ON THE COMMUNITY AND HELPED BEGIN IT’S MASSIVE TURNAROUND!

PA R K I N G PROBLEMS

PA R K I N G PROBLEMS

After Cardinal Group took over it became immediately clear that the parking situation was causing major headaches that were directly affecting the performance of the asset. Residents would come in daily with parking complaints with many citing it as a reason they would not be renewing. This frustration also bubbled over into online reviews, word of mouth marketing, and social media, hurting the new lease side as well. If our other strategies worked, the parking issues would only be exacerbated with more occupancy in coming years.

A plan was quickly formulated to expand the existing overflow lot to allow for more resident and guest parking. 1,615 square yards of paved parking was added resulting in an additional 49 parking spaces.

LET THERE BE LIGHT!

As part of the parking lot expansion all exterior lighting was also converted to LED lighting. This change helped illuminate the entire exterior of the building which created a safer environment for our residents.

This upgrade is also estimated to save the community $4,769 in energy costs over 5 years.

SALES IMPROVEMENTS

SALES I M P R OV E M E N T S

Data we received on takeover showed the community was only closing 5% of total leads. This is well below Cardinal Group’s average and the industry’s average. This data suggested the community was receiving unqualified traffic or the sales ability on-site was hindered somehow. We intended to attack both possible issues.

C LU B H O U S E I M P R OV E M E N T S

The clubhouse and leasing office were not set up for an optimal leasing experience. The flow of the clubhouse was confusing to prospects, there were design elements that made the community feel less sophisticated and luxurious than it was, and there was no place to quietly close on a prospect. To fix these issues, several walls were removed to open the space up and provide a better flow to the clubhouse. The clubhouse featured a large red slide that looked more like a McDonald’s Play Place than luxury apartments. This was removed to improve the look of the community and create space for a new closing room. This closing room gave our team another tool to improve the sales process.

The minor clubhouse facelift was a huge improvement to the community.

The slide was never used. The new soft seating gave residents a place to aggregate. It now is used for studying and general hangouts. The leasing flow was also much more intuitive for prospects as well.

C A R D I N A L WAY OF LEASING

Many team members expressed that they did not have any leasing/sales training prior to Cardinal Group. This was likely a large reason the community was only closing 5% of incoming leads. Cardinal Group’s award winning sales training platform, Cardinal Way of Leasing (CWoL), was quickly instituted.

NEW MODEL INTERIOR DESIGN

Edge 1120 didn’t look like the luxury community it was in photos, videos, and in person. Our beliefs were confirmed in the community’s J Turner Property Index score, which asks prospects how they viewed the community after a tour. Edge 1120’s score was below the Cardinal Group and national averages. Equipped with this knowledge we sourced a professional interior designer to help elevate the model’s aesthetics to the luxury units they were.

BEFORE

BEFORE

BEFORE

BEFORE

BEFORE

NEW MODEL INTERIOR DESIGN WITH THE RE-DESIGNED MODEL IN PLACE WE SAW AN IMMEDIATE UPTICK IN J TURNER’S PROPERTY INDEX SCORE.

9 8

6.5

PRE RE-DESIGN

POST RE-DESIGN

NATIONAL AVERAGE

S A L E S I M P R OV E M E N T R E S U LT S WITH THE UPDATED CLUBHOUSE, NEW CLOSING ROOM, WORLD-CLASS SALES TRAINING, AND PROFESSIONALLY RE-DESIGNED MODEL THE COMMUNITY STARTED TO FIND IT’S SALES GROOVE.

CLOSING RATES 38%

5%

PRE-CARDINAL

TODAY

MARKETING IMPROVEMENTS PRIOR TO CARDINAL GROUP THE COMMUNITY LACKED ANY CLEAR POSITIONING OR COHESIVE MARKETING STRATEGY. THE MARKETING MIX RELIED HEAVILY ON INEFFECTIVE SOURCES AND WAS NOT WELL ROUNDED. WE IMMEDIATELY IMPLEMENTED A NEW COHESIVE MARKETING STACK THAT CLEARLY COMMUNICATED THAT EDGE 1120 WAS THE BEST LOCATED AND MOST LUXURIOUS STUDENT COMMUNITY IN TOLEDO.

N E W D I G I TA L MARKETING S TAC K

Our new digital marketing stack aimed to move the prospect through the sales funnel. Previous efforts were only focused on awareness at the top of the funnel.

- Google Ads - Facebook Ads - Instagram Ads - Snapchat Ads and Filters - YouTube Ads - Email Marketing - ILSs - SEO - International Student Locators - SMS and Live Chat Communication - New Website - New Photo and Video Content

NEW WEBSITE

NEW VIDEO

N E W CO L L AT E R A L

INFO & PRICING

INFO & PRICING

Ask a leasing agent about our current promotions!

Lease Details

COMMON AREA

• Individual Leasing

SQ FT

RATE

Ask a leasing agent about our current promotions!

Lease Details

COMMON AREA

• Individual Leasing

SQ FT

• 12 Term Binding Contract

STUDIO

537 ft2

• 12 Term Binding Contract

STUDIO

537 ft2

• Individual Baths

1BR Flat

513 ft2

• Individual Baths

1BR Flat

513 ft2

Addt’l Fees & Premiums

2BR Flat

863 ft2

Addt’l Fees & Premiums

2BR Flat

863 ft2

• Admin/App Fee: $99

3BR Flat

1,142 ft2

• Admin/App Fee: $99

3BR Flat

1,142 ft2

• Private Bedrooms

• $54 Annual Conservice Fee • $250 Security Deposit

• Private Bedrooms

RATE

• $54 Annual Conservice Fee • $250 Security Deposit

• $10 Top Floor Premium

4BR Flat

1,366 ft2

• $10 Top Floor Premium

4BR Flat

1,366 ft2

• $5 Courtyard View

4BR Town

1,890 ft2

• $5 Courtyard View

4BR Town

1,890 ft2

• $25 Premium Parking

4BR Premium Town

1,890 ft2

• $25 Premium Parking

4BR Premium Town

1,890 ft2

• $10 Balcony Premium

• $10 Balcony Premium

Community Amenities

Fully Furnished Units:

Community Amenities

Fully Furnished Units:

INDOOR

COMMON AREA

INDOOR

COMMON AREA

• Fitness Center – Free Weights, Strength Machines and Cardio Equipment

• 50" Television

• Fitness Center – Free Weights, Strength Machines and Cardio Equipment

• 50" Television

• Couch

• Video Fitness Classroom

• Loveseat

• Video Fitness Classroom

• Loveseat

• Private Study Rooms

• Oversized Chair

• Private Study Rooms

• Oversized Chair

• Free Black and White Printing

• Coffee Table

• Free Black and White Printing

• Coffee Table

• Bike Storage

• End Table

• Bike Storage

• End Table

• On-Site Stand-Up Tanning Booth

• TV Stand

• On-Site Stand-Up Tanning Booth

• TV Stand

• Business Center with Both PC and iMac Computers

• Washer & Dryer

• Business Center with Both PC and iMac Computers

• Washer & Dryer

• Gameroom with Ping Pong Table and More!

OUTDOOR

• Private Balconies and Patios

DINING AREA

• Year-Round Gas Fire Pit

• Kitchen Appliances (Refrigerator, Microwave, Dishwasher, Stove)

• Sand Volleyball Court

• Kitchen Bar Stools

• Relaxing Swimming Pool with Lounge Chairs • Outdoor Kitchen Area with Gas Grill

Apartment Amenities

BEDROOM • Bed Frame

• Gameroom with Ping Pong Table and More!

OUTDOOR

• Couch

• Private Balconies and Patios

DINING AREA

• Year-Round Gas Fire Pit

• Kitchen Appliances (Refrigerator, Microwave, Dishwasher, Stove)

• Sand Volleyball Court

• Kitchen Bar Stools

• Relaxing Swimming Pool with Lounge Chairs • Outdoor Kitchen Area with Gas Grill

BEDROOM • Bed Frame

• Full Extra-Long Mattress

Apartment Amenities

• Complimentary Wifi

• 4 Drawer Stackable Dresser

• Complimentary Wifi

• 4 Drawer Stackable Dresser

• Private Bedrooms and Bathrooms

• Desk & Chair

• Private Bedrooms and Bathrooms

• Desk & Chair

• Large Island with Bar Stool Seating

• Night Stand

• Large Island with Bar Stool Seating

• Night Stand

• Full Extra-Long Mattress

• Granite Countertops

• Granite Countertops

• Wood-Style Flooring

• Wood-Style Flooring

• Large Walk-In Closet

• Large Walk-In Closet

• Ceiling Fan

• Ceiling Fan

• Cable in the Common Area and Each Bedroom

• Cable in the Common Area and Each Bedroom

Edge1120.com | 419.214.6999 | 1120 N Westwood M A N AG E M E N T

Edge1120.com | 419.214.6999 | 1120 N Westwood M A N AG E M E N T

YO D E L WO R T H Y C A M PA I G N 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.

D O N ’ T FA K E SPRING BREAK 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 lnstagram 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 lnstagram 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

N E W S O C I A L M E D I A S T R AT E GY SOCIAL MEDIA WAS PREVIOUSLY JUST A BULLETIN BOARD FOR MEMES AND HARD SALES MESSAGES. WE TRANSITIONED CONTENT TO BE AESTHETICALLY PLEASING AND FOCUS ON THE LIFESTYLE OF THE COMMUNITY.

BEFORE

AFTER

THE R E S U LT S

$ 2 0,0 0 0 R E D U C T I O N

REDUCTION IN

$ 3 0,0 0 0 R E D U C T I O N

T H E R E S U LT S : INCENTIVES

2019

$30,000 REDUCTION IN INCENTIVES FROM 2018

2020

$20,000 REDUCTION IN INCENTIVES PROJECTED FROM 2019

EDGE 1120 REACHED 100% PRE-LEASED FOR THE FIRST TIME IN THE COMMUNITY'S HISTORY!

T H E R E S U LT S : R E N E WA L S

241 219 203

2018-2019

2019-2020

2020-2021

(as of 1/30/20 with 6 months to go)

PRE-LEASING

2017 2018 2018 2019 2019 2020

EDGE 1120 THE COMPS

EDGE 1120

81% 95.4%

85%

THE COMPS

96%

EDGE 1120

100%

THE COMPS

98.5%

2020-2021 PRE-LEASING

2020 202 1

EDGE 1120 THE COMPS

56.8% 27.6%

*AS O F JANUARY 31ST 202 0

INCREASE IN REVENUE

2 019 I N C RE AS E

43.7%

2 02 0 P ROJ E CTE D I N C RE AS E

50.1% 6.4% INCREASE

INCREASE IN NOI

2 019 I N C RE AS E

52.2%

2 02 0 P ROJ E CTE D I N C RE AS E

63.4% 11.4% INCREASE

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 51,000+ beds around the country. In addition, Cardinal Group advises on a $3 billion mixed-use urban redevelopment in Denver, CO.

ABOUT US

Highside Construction handles design and construction management across the nation. The team is comprised of professionals with experience totaling more than 250 projects and $10 billion in construction and real estate-related due diligence. Highside also takes a uniquely integrated approach by working in close coordination with the acquisitions and operations teams to ensure a seamless transition from the business plan, to construction, to stabilization. Aside from the daily management and oversight of the design, construction and project consultants, the Highside is involved in the upfront due diligence and underwriting process, as well as long-term capital planning and budgeting.

C O N TAC T U S

FOR MORE INFORMATION, CONTACT:

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