Jared Schenk discusses distressed student housing properties.
Washington, D.C. — At the recent NMHC Student Housing Conference held here, Jared Schenk, principal of Schenk Realty, identified three ways that student housing properties become distressed. First generation assets that have become obsolete by function and haven’t kept up with the times are the largest category of distressed properties, he said. Properties that are located far away from campus are a second category of distressed assets. Thirdly, infill properties with rents set too high are a property type that makes the cut as well. Lastly, poorly operated properties with inherent issues like debt, location or poor design, are occasionally distressed, depending on the strength of the overall market.
“Amenities can always be improved,” said Schenk during his presentation, “but complexes can’t be moved two or three miles closer to campus.”
— Randall Shearin