Listen to Students When Re-Branding Properties

The new, refurbished fitness room at Marquette University’s The Marq.

CHICAGO—As reported last week in GlobeSt.com, a t the National Apartment Association’s Student Housing Conference & Exposition, a big topic was how to successfully brand a new student housing development. But participants also tackled how to take over an underperforming property and re-brand it with a student population that had come to view it as tired and old. Austin, TX-based Campus Advantage and its marketing partner Catalyst were faced with that challenge when in 2013, along with an institutional investor, the former acquired 2040 Lofts, a student residence at Marquette University in Milwaukee that had seen better days. Occupancy had fallen to about 80%, Madison Meier , director of business development and transitions with Campus Advantage, told conference participants. “Everyone knew it had struggled a bit.” The property had abundant clubhouse space, but its color scheme was gray and few students used it. Furthermore, although 2040 Lofts was just one-half mile from campus, it had very little street presence and “it did not grab the attention of people as they walked by.” But the good thing about re-branding a property, as opposed to branding a ground-up development, is that the operator can survey the existing population of students to discover what remedies will get the best response. Their research made a few things clear. “We knew we needed to brighten up that space,” said Katy Smerko , the company’s vice president of leasing. Campus Advantage invested $830,000 in capital improvements, which included adopting the blue-and-yellow color scheme suggested by the residents. The company also removed a series of big, gray pillars that had obscured the interior views of the common areas and in response to other student suggestions, also upgraded the fitness area. “The space took on a life of its own.” Company officials also advised conference participants to forget doing piecemeal changes. If you want to make a deep impression and change how students view a property, the changes should hit everyone all at once, preferably at a public event. For 2040 Lofts, which they re-branded as The Marq, Campus Advantage held a VIP event at the property, which attracted hundreds, and convinced 51 to sign leases. By 2015, the property was 96.4% occupied. Furthermore, not only did the property quickly fill up, but the company was able to raise the effective rental rate by 3%, Smerko said. “I think that will continue to compound year after year.”