NP Times July 2019

The July 3, 2019

Times

Latest Student Housing News

Vol. 2

NP WINS INNOVATOR AWARD! NP HIRES A WINNING TEAM

Nelson Partners attracts some of the best and brightest in the industry. “It’s incredibly exciting to see the caliber of people joining our firm.” - Patrick Nelson, CEO, and Founder of Nelson Partners. Cont’d on Page 5

NP GOES LONG AT ADISA

NP WINS INNOVATOR AWARD

RENEWING LEGACY

(Randy Shearin, Paris Watson, Paula Platt, Patrick Nelson)

Nelson Partners wins big and takes home the coveted Innovator Award at the ninth annual InterFace Student Housing Conference. Cont’d on Page 3

Patrick’s passion in the industry stems from a family history rooted in three generations of real estate.

Cont’d on Page 6

BREAKING GROUND & PROPERTY UPDATES Football Hall of Famer Dan Marino makes a special appearance at the NP booth during the ADISA conference. Cont’d on Page 2

NP PROPERTY WATCH

Learn about the latest and upcoming NP student housing acquisitions.

Cont’d on Page 8

View the Award Winning “Not Your Grandma’s Basement” Video

NP BUYS SKYLOFT

Austin, TX, On February 26, 2019 Nelson Partners Student Housing, Aliso Viejo, CA acquired Skyloft, a 2018 built, 100 percent occupied, 674-bed student housing property and is located adjacent to the University of Texas at Austin. Cont’d on Page 7

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Nelson Partners breaks ground on an exciting new ground-up student housing construction project in Logan, UT. See the new projects and renovations taking place.

Cont’d on Page 4

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NP Goes Long At ADISA With Dan Marino CEO of Nelson Partners, realized a dream conducting a “Jimmy Fallon” style interview of the legend and his childhood hero.

The event attracted conference-wide intrigue and offered Nelson Partners’ more than 90 guests in attendance a once-in- a-lifetime opportunity to play catch with an NFL superstar! Dan Marino commented on the occasion afterwards stating, “I really enjoyed all of the people you had there. It was a nice evening, and I had a lot of fun.” Nelson Partners Student Housing appreciates all who attended and hopes each guest enjoyed meeting, speaking to, and even throwing the football around with Dan Marino.

Aliso Viejo, CA- November 15, 2018 Alternative & Direct Investment Securities Association, (ADISA) announced record attendance at the 2018 annual conference with 1031 exchanges on the opportunity watchlist this year. In addition to 1031 exchanges and student housing investments, the agenda topics included four FINRA and state regulators’ presentations covering news on private equity and qualified opportunity zones, conservation easements, and important regulatory and legislative information. Nelson Partners is pleased to bring our partners insights from the world’s largest exhibition for alternative and direct investments!

Las Vegas, NV- October 8-10, 2018 Over the course of the three-day conference,

ADISA hosted close to 40 educational sessions for sponsors, affiliates, brokers, RIA’s, and financial advisors. Nelson Partners’ CEO, Pat Nelson received a special invitation to be one of four panelists on a prestigious sector discussion during breakout sessions.

Pat Nelson for Nelson Partners Student Housing joined Eric Kaplin of Griffin Capital, Kyle Bourne from Bourne Financial Group and S2K Financials’ Greg Vickowski presenting the current outlook for multifamily, hospitality, student and senior real estate investment markets.

Dan Marino joined esteemed guests and colleagues at the Nelson Partners Student Housing headlining dinner held at the spectacular ARIA Resort & Casino on opening night of the conference. Dan Marino is best known as the quarterback who led the Miami Dolphins to the playoffs ten times, breaking almost every passing record in the National Football League along the way. Patrick Nelson, Founder and

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The Nelson Partners’ team was glad to have been a part of this vital meeting of professionals who recognize the necessity of non-traditional investments as critical components to any investment portfolio.

Thank you to the many guests and friends who were able to attend, and many thanks as well to Nelson Partners’ new colleagues and potential partners for the future. “It’s real nice and exciting for me to break the records, but it’s more exciting for me to be on a winning team.” – Dan Marino At Nelson Partners we specialize in developing, acquiring and managing high quality purpose-built student housing assets. We look forward to integrating the innovative ideas from the 2018 Annual ADISA conference into aligning our investment opportunities with your investment goals. For more information about the NP Competitive Advantage please visit www. NelsonPartners. com.

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NP WINS INNOVATOR AWARD! at the InterFace Student Housing Conference

Austin, Texas — April 9, 2019, Nelson Partners Student Housing wins the Innovator Award for Best Social Media Campaign, “Not Your Grandma’s Basement” at the 9th Annual InterFace Student Housing Awards that honored the very best in the student housing industry. The award-winning video had over 1 million views, an unprecedented amount for a student housing focused social media campaign.

The coveted Innovator Awards are presented every two years and bring forth the most elite players in the student housing industry. More than 100 industry experts judged 115 plus entries in this year’s contest. The awards Nelson Partner Student Housing Team Celebrating Our New “Innovator Award” ceremony attracted over 1,400 industry professionals from across the country and was held largest acquisition to date. Skyloft is a newly constructed, during the InterFace Student Housing Conference at the J.W 674-bed luxury student housing property, located adjacent to The University of Texas at Austin. With the event being held in Austin, TX it was a perfect opportunity for the conference attendees to come tour the new Skyloft property. The property management team was ready to accommodate the busy tours during the three-day conference. They even had a brand new Nelson Partners signage installed in the lobby the day before in preparation for the heavy traffic.

View the Award Winning “Not Your Grandma’s Basement” Video

Marriott in Austin, Texas.

Nelson Partners received numerous compliments on the premier location to campus and quality of the 18-story building. The sunny weather provided great views from the rooftop pool deck of the iconic UT Tower and the Darrell K Royal-Texas Memorial Stadium. The future is looking bright with these significant achievements after recently celebrating their first year as Nelson Partners.

Nelson Partners was proud to participate in this conference as a gold sponsor along with the top firms in the industry. Among the industry professionals, was Paula Platt, an Executive Vice President at Nelson Partners Student Housing. Platt was selected as a key panel speaker for her vast industry knowledge and experience on, “How to Add Ancillary Income, Keep Costs Low, and Boost NOI Through Smart Management and Operations.”

This prestigious award came on the heels of Nelson Partners

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A full House at the InterFace Student Housing Conference

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THE MARK Before & After

To find strong investment properties you need more than just a good eye for a property that is close to campus, you need to find a property with good bones that will appeal to the students. One talent that Patrick Nelson has developed over the decades is his ability to see potential in older properties. The Mark, located in Tempe, Arizona, sits in close proximity to Arizona State University.

Built in 1969, the property fit the bill, great bones and a great location.

GOOD BONES

Nelson Partners is currently remodeling a few different properties with “Good Bones.” The properties undergoing rehabilitation are set to be completed for the upcoming school year.

Fairway in West Layfette, Indiana; Wildcat Canyon Village; College Crest in Pullman, WA, and NP The Block in Logan, Utah (ground-up).

The Fairway

The Fairway is a premier value-add student housing property with 167-units / 298-beds servicing the students of Purdue University.

The NP Construction team is set to begin interior renovations on 4/29/19. The team will be on a schedule of 12 units a month until completed. The exterior renovations will include a fire pit, new spa, sitting area, dog park equipped with features and a watering station. These renovations are scheduled and on track to be completed by 9/1/19.

The fitness center will be undergoing a full makeover with new equipment, flooring, paint, and water fountain. These renovations are set to be finished on 8/1/19. The 3-dimensional spa model is nearing completion.

College Crest

Before Photo: The Mark, Tempe, AZ

College Crest is located in Pullman, Washington and was purchased in May 2017. The permits will be finalized and renovations will being on June, 29, 2019. Mel Shepherd is the new Director of Capital Improvements. He will be overseeing the renovations and keeping them on schedule. Buildings A and B are set for completion prior to the upcoming school year. The exterior renovations along with building the leasing center will start in June. It will take approximately 7 months to complete.

Nelson Partners closed on the property in November 2015 with plans for an extensive renovation. Patrick’s vision for renovations and amenities at this property are nearly complete. The scope of renovations includes a new doubledecker hot tub where you can enjoy a huge 40+ foot movie screen on the side of the building. A spiral water slide empties into the pool that wraps around through the center of the property like a lazy river.

Wildcat Canyon Village

After Photo: The Mark, Tempe, AZ

Wildcat Canyon Village is located at Tucson, AZ that services students attending the University of Arizona.

This property is a valueadd opportunity that will undergo interior and exterior renovations conducted by Nelson Partners Construction Management team. Interior renovations include new fixtures, granite counter tops, and top of the line appliances.

Outdoor amenities will include a signature hot tub and state of the art Clubhouse with grilling area for tenant’s enjoyment. Upon completion, WCV will transform into a modern purpose-built student housing property.

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NEW HIRES AT NELSON PARTNERS “The greatest asset of a company is its people” Jorge Paulo Lemann

Chuck Godlesky: Chief Financial Officer Nelson Partners appoints Chuck Godlesky, CPA as the Chief Financial Officer. Mr. Godlesky brings over 30 years of real estate experience to Nelson Partners. In his role as CFO he is responsible for the accounting and financial reporting functions including audit, tax, treasury, budgets and compliance. Prior to joining Nelson Partners, Mr. Godlesky served as CAO for Zephyr Partners, a large, diversified San Diego based real estate investment company. In addition, he has extensive experience at several other real estate investment companies which owned and managed $400M to $1.3B in assets in a wide variety of asset classes, backed by both institutional and high net worth equity investors, some of which were acquired and managed through investment funds. He has also served as CFO for a large subcontractor and prior to that spent 12 years in the homebuilding industry, primarily in VP & Controller level positions. Mr. Godlesky started his career with the Big 4 CPA firm of Deloitte & Touche in Boston, MA where he earned and currently holds an active CPA license. Mr. Godlesky is a graduate of The Pennsylvania State University with a Bachelor of Science in Business/Accounting.

Caroline Parker: VP Asset Management Caroline Parkers in the new Vice President of Asset Management. She brings over 11 years of experience in multifamily real estate and finance.

Prior to joining Nelson Partners, Ms. Parker served as VP of Business Development and Operations at John Burns Real Estate Consulting, a leading U.S. real estate research firm offering research and custom consulting and advisory services on the housing industry. In addition, she has experience working in various capacities in Asset Management and Investments for The Irvine Company and Greystar Real Estate Partners. Ms. Parker started her career in Corporate & Investment Banking with Wells Fargo Bank (legacy Wachovia). She holds a Bachelor of Arts degree in Journalism & Mass Communication from Washington & Lee University and a dual-degree Masters of International Business from the University of South Carolina and The University of Vienna (Austria) with a concentration in Finance.

Melissa Witten: VP of Investor Relations Melissa Witten joins Nelson Partners as the Vice President of Investor Relations. Melissa has over 10 years working in Finance. She previously worked for Wells Fargo Securities on the fixed income sales and trading desk servicing institutional clients. She graduated from San Diego State University with a bachelor’s degree in real estate. Melissa holds her FINRA series 7 and 66 licenses.

Mel Shepherd: Director of Capital Improvements Mel Shepherd is the new Director of Capital Improvements.

He brings over 20 years of knowledge and experience in the construction industry. His background includes multifamily construction management, strategy, renovation and design work. He has many years of experience in full interior and exterior rehabilitation. Mel attended Michigan State University and has a masters level certificate in facilities management.

Jamison Johnson: Sr. Asset Management Mr. Johnson is a Senior Asset Management responsible for the oversight of the operational performance of student housing assets, strategic positioning, and overall investment performance.

Prior to joining Nelson Partners Student Housing, Mr. Johnson was the Director of Asset Management for Crown Acquisitions, Inc. At this firm he operated in a similar capacity, but was also responsible for other asset classes, including office and land development projects. He has approximately 21 years of experience in commercial real estate and has developed portfolio analyses for a large development/holding company, managed nationwide development studies, prepared valuations for various accounting purposes. Mr. Johnson graduated cum laude with a bachelor’s degree in Finance from Michigan State University. He is also licensed as a Certified General Real Estate Appraiser in California and holds the MAI designation.

Starvel Williams II: VP of Operations Starvel Williams II, M.ED, CCIM, CAPS Vice President of Operations.

Mr. Williams has overseen the daily operations of 51 communities in 22 different marketing in 16 states which include over 7,600 units and 23,000 beds. He’s serviced the needs of institutional client, not-for-profit organizations (501C3) and private investors. The types if properties included on & off-campus, purpose-built student housing - A/B classes (mid-rise and high rise, mixed-use, garden style properties and condominiums) and conventional A/B/C class properties.

He has extensive experience in new lease-ups, stabilized assets, repositioning distressed assets, acquisitions, dispositions and business development and asset in receivership.

Superstar Student Housing Team

Hard work pays off for this superstar team of managers. Hitting the “100% Club” is a top achievement and one that everyone works hard to obtain. Through strong pre-leasing efforts, these experienced managers pushed their teams to reach 100% occupancy. It’s crucial for the properties to lease up to maximum occupancy. Managers and property staff begin these efforts far before the school year is over in preparation for the following year.

The manager’s retreat is held every year at the Nelson Partners headquarters in Aliso Viejo, CA. During the manager’s retreat, Nelson Partners surprised the managers from the 100% Club and whisked them off to Disneyland for a fun filled day.

Nelson Partners believes in rewarding hard work, and what a better way to spend the day than at Disneyland. The group of top managers enjoyed an enchanting day of team building and bonding. The day was concluded by an awards ceremony recognizing the 100% club. A beautiful glass cube trophy was handed out as a token of appreciation and recognition. Way to go team!

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NP ORGANIZATIONAL CHART

Renewing Legacy: Family Business Traditions

Patrick Nelson is formerly the President and CEO of Nelson Brothers (NB), which was formed in 2007.

Pat’s passion in the industry stems from a family history rooted in three generations of real estate. In 1946, Nelson Brothers Construction Co. was established in Salt Lake City, Utah by Patrick’s grandfather, and is still owned by his brothers more than 70 years later. Patrick’s father also spent more than 40 years in real estate sales and syndication across the State of California.

Today’s Nelson Partners’ well-integrated total student housing platform includes Nelson Partners Construction Management (CM), in addition to Property Management (PM) providing our investors a unique competitive advantage in student housing investment. CM manages value add renovations and construction for current properties as well as developing and rehabilitating new acquisitions and additions to the Nelson Partners student housing property portfolio.

The CM leadership team is not only involved with the daily oversight of design and construction, but also the upfront due diligence and the underwriting process, long-term capital planning, and facilities management.

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NELSON PARTNERS PURCHASES SKYLOFT In the Heart of The University of Texas in Austin, TX

The newly constructed 18-story building provides the best Austin has to offer in location and quality for full time students. Skyloft represents the modern age of student housing including a rooftop pool, Hi-speed Wi-Fi, a custom Amazon package receiving system, full meal vending machines, state of the art fitness center, marketplace, in-unit washer & dryer, controlled access, study lounges, and subterranean parking.

Patrick Nelson, CEO and Founder of Nelson Partners, was very happy with the acquisition, “We are extremely fortunate to have acquired what we believe is one of the premier student housing projects not just in the market, but across the entire country. It offers the best in every category from location to amenities.” Skyloft is also already 79 percent pre-leased for the 2019-2020 academic year.

Paula Platt, Executive Vice President was equally pleased with the purchase, “The Skyloft acquisition is an exciting milestone for Nelson Partners and we are delighted to add it to our diverse portfolio. With an unbeatable location to one of the nation’s premier universities and unrivaled views of the iconic UT Tower and the Darrell K Royal-Texas Memorial Stadium, Skyloft represents the very best in student housing.”

Sandy Simmons, Director of National Sales remarked on his recent trip to Skyloft, “We are extremely pleased to now be the owners of this incredible new property. I was amazed by the thousands of students walking past Skyloft to get to the UT campus and Skyloft Student Housing was right in the center. No wonder why we were such a big hit at the Student Housing Fair.”

With the addition of Skyloft, Nelson Partners has established a new high mark amongst the elite firms in the student housing industry. The fully vertically integrated student housing firm has over $600 million in assets under management, ground-up construction, and on-site property management. Nelson Partners student housing leased up to approximately 99 percent for the 2018-2019 school year.

Breaking Ground

complex with great views. Campus and the mountains to Blue Haven is raw land the East and view located in Logan, UT that was of the beautiful acquired in 2017. Originally Cache Valley and called Blue Haven, and Nelson mountains to the Partner’s changed the name West. This student to NP The Block. This site is a housing project fantastic location for Student will include all the Housing. It is located across benefits of new the street from campus and modern technology the new $30,000,000 Student from Automated Aggie Recreation Center. NP Package System, Super-Fast Wi-Fi, state of the art security The Block will transform into and controlled access. NP has officially broken ground on this a 5-story student housing property and is excited for its completion.

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1031 PROPERTY WATCH Income 1031 Exchange Offerings Gather Student Housing - 900 N. Forest St, Bellingham, WA 98225 Property Information

Financial Information

Built:

2017

% Leased:

100.00%

Purchase Price:

Total Equity:

$23,708,000

# of Units:

133

Net Rent Area:

142,015 sq. ft.

Min. Investment: $50,000

1st/Yr Cash Flow:

6.50%

# of Beds:

417

University:

W. Washington

LTV:

Proj. Cash Flow:

6.06% over 10 years

$55,988,000 57.7%

Sol y Luna Student Housing - 1050 E 8th St., Tucson, AZ 85719 Property Information

Financial Information

Built:

2014

% Leased:

Coming Soon

Purchase Price:

Total Equity:

Coming Soon

# of Units:

341

Net Rent Area:

Coming Soon

Min. Investment: Coming Soon

1st/Yr Cash Flow:

Coming Soon

# of Beds:

977

University:

Arizona

LTV:

Proj. Cash Flow:

Coming Soon

Coming Soon Coming Soon

University of

Skyloft Student Housing - 507 w 23rd St, Austin, TX 78705 Property Information

TEXAS

Financial Information

Built:

2018

% Leased:

100.00%

Purchase Price:

$139,950,000

Total Equity:

$73,950,000

# of Units:

212

Net Rent Area:

218,992 sq. ft.

Min. Investment:

$50,000

1st/Yr Cash Flow:

6.00%

# of Beds:

674

University:

Texas

LTV:

47.16%

Proj. Cash Flow:

5.60% over 10 years

Value-Add 1031 Exchange Offerings Fairway Student Housing - 1304 Palmer Dr., West Lafayette, IN 47906 Property Information

Financial Information

Built:

1965

% Leased:

95.20%

Purchase Price:

Total Equity:

$7,102,000

# of Units:

167

Net Rent Area:

158,875 sq. ft.

Min. Investment: $500,000

1st/Yr Cash Flow:

6.87%

# of Beds:

298

University:

Purdue

LTV:

Proj. Cash Flow:

7.56% over 5 years

$22,952,000 69.09%

Fairway’s buildings were constructed in 1965, 1970, 1980, 2007 and 2008

Wildcat Canyon Village Student Housing - 1050 E 8th Street, Tucson, AZ 85719 Property Information

Financial Information

Built:

1968

% Leased:

96.00%

Min. Investment: $400,000

1st/Yr Cash Flow:

6.87%

# of Units:

76

Net Rent Area:

58,160 sq. ft.

LTV:

Proj. Cash Flow:

7.90% over 10 years

# of Beds:

128

University:

Arizona

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Not to Exceed 65%

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About Nelson Partners Student Housing

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Nelson Partners Real Estate Acquisitions, an affiliate of Nelson Partners Student Housing and the Investment Wholesaling Division are headquartered in Aliso Viejo, CA. Nelson Partners Property Management, an affiliate of Nelson Partners Student Housing, is located in Provo, UT, and manages over $700 million in real estate in 11 states and employs over 180 employees.

Nelson Partners Student Housing was recognized in 2017 as one of the Inc 500 fastest growing companies.

Nelson Partner’s Principal, CEO & President, Patrick Nelson, was a semi-finalist for the Orange County Ernst & Young Entrepreneur of the Year award.

Our Fully Integrated Student Housing Strategies Class-A The Class A student housing strategy buys brand new, purposebuilt student housing properties near university / college campuses with the goal of stable cash-flow and the potential for capital gain upon the sale of the property in 5-7 years.

University Flats: Greeley, CO - UNC

The Mark: Tempe, AZ - ASU

Value-Add Our value-add strategy buys well located older student housing properties that we will refurbish to modern standards and add amenities to command higher rents and stabilized occupancy. The goal is to drive the future value of the property to provide the potential for solid capital gains after the property is sold in 3-7 years. The expected cash-flow in this strategy is generally more modest and less stable than that in the Class A strategy due to the interruptions caused by the refurbishment process.

Construction

Construction & Property Management

Our development strategy utilizes selected, well located land parcels with proximity to campuses to construct purposebuilt student housing that upon completion will have all of the characteristics of what our Class A Strategy seeks: high desirability and stable occupancy. Because we own our construction company, we believe we can complete the projects at a lower cost thus providing the potential for larger capital appreciation upon sale in 2-5 years.

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