Student housing fund · Investment opportunity
University Gardens, near the University of Utah, Salt Lake City
The fund buys student housing and apartments near Division I universities.
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The plan is to improve each property, target monthly distributions, and sell in about three years. The minimum investment is $100,000.
A 15% preferred return. A 7.25% cash flow target, with distributions targeted monthly. A target hold of 3 years, and a $100,000 minimum. The assets are student housing and multifamily.
The fund has a 7.25% cash flow target. It comes from operating cash flow at the properties, subject to performance and reserves.
The sponsor's team collects it, pays the property's bills, and holds reserves. What is left is the operating cash flow the fund aims to distribute each month.
First it sources a property and underwrites the price, rents, expenses and debt. Then it improves the building and runs it: leasing, expense control, capital work. Last, it seeks appreciation over a three-year target hold while aiming to pay investors monthly.
Here one company handles the purchase, the rehab and the day-to-day at each student housing property. That removes third-party costs and keeps more of the economics inside the portfolio.
That makes it less directly tied to employment growth and the wider economy. The fund targets housing near Division I universities for that reason.
The closest buildings to campus tend to lease first and stay full longest. The fund is built to own student housing like that, and it pairs those assets with a three-year target hold.
Being that near is where leasing speed and occupancy hold up best. Before any capital goes in, the sponsor reviews purchase basis, rents, expenses, financing and reserves.
The fund is built to own real estate: student housing and multifamily, with tenants on leases. Property can still lose value, and the offering documents list the risks plainly.
It is not listed on an exchange, and it is not open to the general public. Investors come in directly, and the sponsor manages the student housing end to end.
Someone who wants professionally managed student housing and can commit capital for about three years. It is illiquid: there is no daily price and no redemption on demand.
The fund has a 7.25% cash flow target, with distributions targeted monthly. It comes from rent at student housing and apartment properties, not from a bank. So it carries real estate risk, and it is not a savings account.
The other put capital into housing near a university, with a three-year target hold and distributions targeted monthly along the way. That second path is what the fund is designed for.
Exteriors, amenities and interiors at student housing, aimed at lifting rents and occupancy. The same company then manages the building, so cost and schedule stay in one place.
ICON Property Management handles leasing, operations and maintenance at its student housing with its own on-site staff. For an investor, that means one group is accountable for how each property performs.
The fund is built for owners stepping out of active landlord work. You hold an interest in professionally managed student housing and multifamily. The sponsor handles the leasing, the repairs and the residents.
Student housing answers to something else: how many students enroll. The sponsor's view is that this makes occupancy less directly tied to economic cycles.
It may help offset taxable income, subject to final tax reporting and your own limits. Tax results depend on your situation, so review them with your advisor.
With this fund you get partnership-style reporting instead. It shows your share of income, expenses and depreciation.
Distributions are targeted monthly. The fund invests in student housing and apartments near Division I universities. The minimum is $100,000.
ICON buys, renovates and manages properties like this one. The fund has a 20% target IRR over a 3-year target hold.
So the fund buys near Division I universities, within walking distance of campus. Leasing and occupancy stay strongest there.
The cash that is left is what the fund aims to distribute each month. The cash flow target is 7.25%.
The photos show University Gardens in Salt Lake City, student housing about a mile from the University of Utah's stadium. It is operated by ICON, the fund's sponsor, and is representative of what the fund targets. It is not a holding of the fund.
How it works
20%target IRR, not guaranteed
15%preferred return
7.25%cash flow target, with distributions targeted monthly
3 yearstarget hold
$100,000minimum investment
Division Istudent housing and multifamily near Division I universities, walking distance to campus
Returns, distributions and timing are targets and are not guaranteed.
ICON brings acquisitions, construction and property management together under one platform. One company buys the property, renovates it and runs it day to day.
The fund is built to hold real estate, so depreciation may be allocated to investors and may help offset taxable income, subject to final tax reporting. Review it with your own tax advisor.
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